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| UltraTech net dips 42% |
| BS Reporter / Mumbai Jul 30, 2010, 01:13 IST |
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UltraTech Cement, part of the Aditya Birla group, today posted a 41.9 per cent drop in net profit at Rs 242.7 crore for the quarter ended June, compared to Rs 417.8 crore in the previous corresponding quarter.
Net sales dipped 8.3 per cent to Rs 1,789.8 crore from Rs 1,952.8 crore last year. Lower realisation, higher input costs and declining demand affected the margins.
“Markets of south India, which account for around 33 per cent of the company’s total sales volume, continued to be adversely affected due to lower offtake and shortage of wagons,” said the company in a statement. The company produced 4.6 million tonnes of cement, two per cent more than what it produced in the same quarter last year.
Cost of power and fuel went up 7.8 per cent to Rs 417.8 crore, while the raw material costs were 13.7 per cent higher at Rs 257.6 crore. The company had to meet its requirement of coal through imports, as supply from linkages further reduced. Imported coal prices rose from $76 per tonne to $110 per tonne (y-o-y),” the company said. Earnings per share slipped to Rs 19.5 from Rs 33.6 a share.
The company’s board today approved an additional capex of around Rs 5,600 crore. This is earmarked for setting up additional clinkerisation plants at Chhattisgarh and Karnataka. The company will also establish grinding units and bulk packaging terminals across various states.
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