Net profit nearly doubles on static sales volume

UltraTech Cement, a part of the Aditya Birla Group, reported a 97 per cent jump in its net profit at Rs.550 crore for the second quarter ended September 30, 2012, against Rs.279 crore in the year-ago period.

Net sales stood at Rs.4,700 crore (Rs.3,908 crore), a rise of 20 per cent. The operating profit was up 57 per cent at Rs.1,076 croreagainst Rs.684 crore, a company statement said. The combined domestic cement and clinker sales were up marginally at 9.06 million tonnes (8.94 million tonnes).

“The variable cost rose by 8 per cent as compared to the second quarter of 2011-12,’’ the company statement said, adding, “this was mainly on account of higher raw material prices which are linked to the last increase in railway freight and increase in diesel prices.

“The benefit of softening in prices of imported coal was partly offset by the depreciation in rupee.

“Extensive measures for cost improvement and logistics optimisation taken by the company help in curbing costs to some extent.’’

The company’s clinkerisation plants at Chhattisgarh and Karnataka are expected to be operational from early 2013-14 and this will take the cement capacity to 10.2 million tonnes.

More In: Companies | Business