UltraTech’s net profit rose 5% to ₹594 crore during the third quarter ended December 31, due to lower expenses. The company’s net sales grew 1.45% to ₹6,013 crore, according to a statement.
On a standalone basis, the Aditya Birla Group firm saw its net profit grow 6.6% to ₹563 crore despite a fall in net sales by ₹22 crore to ₹5,540 crore. The company’s board approved the setting up of a 3.5 mtpa integrated cement plant at Dhar, Madhya Pradesh at a total cost of about ₹2,600 crore.
“Commercial production from the plant is expected to commence by Q4FY19. This plant will help in reduction of lead distance and cater to the markets of south-west Madhya Pradesh, where the company is not a significant player,” UltraTech said.
With this expansion and the acquisition of the cement plants of Jaiprakash Associates Limited, the company’s cement capacity will increase to 95 mtpa, including its overseas operations.
The Centre’s spending on infrastructure, development of smart cities and interest rate cuts supported by subsidy schemes for housing would be the key drivers of demand, the company said.
