Asia / Oceania
UltraTech Cement posts profit of 19%
Apr, 25 2012
(India) -- UltraTech Cement, an Aditya Birla Group company, has reported that its net profit was up 19 per cent in the March quarter. The company attributed its high profits to higher production.
The company produced 11.54 million tonnes (mt) in the March quarter against 10.70 mt in the same period last year, an increase of eight per cent.
For the financial year ended March, net profit was up 42 per cent at Rs 2,446 crore , while sales were up 18 per cent at Rs 18,166 crore. The combined cement and clinker sales was at 40.73 mt during the fiscal.
The company registered the high profits despite cost pressures. Total expenses were up 17 per cent at Rs 4,306 crore during the fiscal. The power and fuel expenditure increased by 23 per cent to Rs 1,190 crore and freight cost rose 14 per cent to Rs 1,089 crore.
The variable cost increased by 13 per cent driven by high input and energy costs. The price of coal rose during the entire fiscal. The coal prices rose between 30 per cent and 150 per cent in the March quarter. The logistics cost also rose on account of the increase in railway freight.
The rising input costs are likely to have an adverse impact on the profit margins of the company. The surplus in supply is also likely to continue for the next three years. Despite that, the Indian cement industry will grow over eight per cent owing to the Government's focus of infrastructure development.
UltraTech’s cement capacity will be enhanced by 10.2 mt a year, as the company plans to set up additional clinker plants in the states of Chhattisgarh and Karnataka. The company has plans to put up more grinding units, bulk packaging terminals and ready-mix concrete plants.
By: Rashmi Kalia (ARI-C NEWS)
UK construction firm Balfour Beatty, which owns and wants to sell US-based Parsons Brinckerhoff, has rejected a third takeover offer worth more than £2bn from rival Carillion. More
Cemex say it is well on their way to completing the supply of 250,000 cubic meters of various specialized ready-mixed concretes for the construction of the new Braskem Idesa Etileno XXI plant in Veracruz, Mexico. More