UltraTech Cement sees 80% rise in net profit

India's UltraTech Cement (Aditya Birla Group) has posted a 79.8 per cent YoY increase in consolidated net profit to INR7.12bn (US$99.67m) for the 3QFY19-20, while EBITDA rose 25.4 per cent to INR21.41bn. The company has attributed the surge in profit to a higher price realisation and lower energy costs.

However, net sales declined 1.2 per cent YoY to INR101.76bn in the December quarter. Cement sales volumes also decreased four per cent YoY to 20.9Mt, impacted by a three per cent fall in domestic sales to 19.4Mt.

Despite the overall slowdown in domestic sales, the company noted a demand turnaround in several regions on the back of a drive in rural housing and infrastructure projects. As such, rural sales volumes climbed nine per cent YoY.

"Signs of revival were visible in some markets during the latter part of third quarter of FY20. This, together with the government’s firm commitment to revive the economy and the thrust on infrastructure spending, augur well for the growth of cement demand," said the company in a statement.