UltraTech reports drop in net profit
For the first time in last five years, UltraTech, India's largest cement manufacturer has reported a drop in net profits. The company had infact surprised analyst in quarter ended March 2014. While Bloomberg analysts expected net profit of Rs 635 crore, the profit was Rs 838 crore, up 15.4 per cent from Rs 726 crore in the year-ago period. The profit came with the fall in the effective tax rate - from 33 per cent in the March quarter of FY13 to 14 per cent in the quarter ended March 2014. For FY14, however the net profit dropped by 19 per cent year-on-year to Rs 2,144 crore. Net sales were up 27 basis points to Rs 20,078 crore from Rs 20,023 crore in FY13. Company officials said that the year witnessed continuing pressure on input and logistics costs, given the increase in railway freight and a continued rise in diesel prices. Although, there was reduction in the cost of imported coal, the rising dollar value negated the price drop.