UltraTech Cement Jul-Sep qtr net profit up 25percent
UltraTech Cement has reported a 25 per cent growth in consolidated net profit at Rs 613.64 crore for the quarter ended September 30, 2016 on the back of lower expenses. The flagship firm of the Aditya Birla Group had clocked a consolidated net profit of Rs 490.59 crore in the year-ago period, it said in a filing to the BSE.
However, the consolidated total income from operations declined to Rs 6,508.62 crore over Rs 6,669.45 crore in the corresponding period last fiscal. Total expenses declined to Rs 5,624.16 crore, over Rs 5,972.39 crore in the year-ago period.
The company said that its net sales dropped to Rs 5,709 crore as against Rs 5,857 crore in the previous fiscal. In a presentation, UltraTech said that the "domestic sales volume (was) impacted due to good monsoon."
Profit before interest, depreciation and tax at Rs 1,378 crore was higher by 16 per cent as compared to Rs 1,186 crore in the corresponding period of the previous year. "Profit after tax rose 25 per cent from Rs 491 crore to Rs 614 crore in Q2 FY17," the company said.
The company said that the government's thrust on developing infrastructure spending, good monsoons, development of Smart Cities leading to the growth in the housing demand in Tier1 and Tier 2 cities, and slower pace of new capacity addition augur well for the cement industry.
UltraTech is well positioned across the country to meet the expected rise in demand and participate in the next phase of growth in the country, it said.
On acquisition of 21.2 MTPA cement capacity, the company said in the results presentation that approval has been received from the Competition Commission of India (CCI) and added that a court-convened meeting for seeking approval from shareholders and creditors is scheduled for 20 October.
The "transaction is expected to complete in next 5-6 months," it said.