UltraTech's production up; buys Gotan Limestone
The cement and clinker production of UltraTech Cement rose five per cent to 9.94 million tonne (mn t) in the quarter ending June 2012.
Production of white cement and wall-care putty rose 17 per cent to 2.25 lakh tonne during the period. The firm reported 14 per cent increase in net profit to Rs 778 crore (Rs 683 crore) in the June quarter, on the back of higher production and better realisation. Overall expenditure was up 18 per cent at Rs 4,011 crore against Rs 3,386 crore recorded last year. The variable cost rose by 10 per cent mainly due to higher energy cost and other raw material prices.
The recent increase in freight charges by the railways and diesel prices also pushed up operational cost, as per the company. The company has also reported other income of Rs 69 crore (Rs 44 crore).
However, since input cost has started to come down, in a major relief to cement producers, UltraTech expenses on a sequential basis is down seven per cent compared with Rs 4,306 crore logged in the March quarter.
Meanwhile, UltraTech Cement has acquired Rajasthan-based Gotan Lime Stone Khanij Udyog. With this acquisition, Gotan Limestone will become the wholly owned subsidiary of UltraTech cement.