Ultra Tech Cement, on Monday, announced a 16.2 per cent drop in net profit at Rs. 726 crore (Rs. 867 crore) for the fourth quarter ended March 2013 on slightly higher total income of Rs 5,472 crore (Rs 5,384.14 crore).
The company’s operating profit for the quarter was lower at Rs. 1,383 crore (Rs. 1,464 crore).
According to Gautam Sinha Roy, VP – Equities, Motilal Oswal Securities, the decline in net profit for the period was mainly on account of lower volume and higher raw material costs.
“Revenues grew by 1 per cent due to lower than expected volume, which were down 3.6 per cent at 11.13 million tonnes.
Cement realisation grew 3 per cent thereby negating some of the impact of lower volume,” he said.
In 2012-13, UltraTech reported a net profit of Rs. 2,655 crore (Rs. 2,446 crore) on net sales of Rs. 20,018 crore (Rs. 18,158 crore). The operating profit was up at Rs. 4,980 crore (Rs. 4,519 crore).
The board of directors has recommended a dividend of 90 per cent.
UltraTech’s combined cement and clinker sales of grey cement was flat at 40.7 million tonnes. For white cement, it was 570,000 tonnes (560,000 tonnes).
“The year witnessed continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of softening in prices of imported coal,” the company said in a statement.
The cement capacity has increased from 48.75 million tonnes to 50.9 million tonnes and the clinkerisation plant of 3.3 million tonne capacity in Karnataka is to go on stream in Q1 of 2013-14, the company said.
Rs. 2000 cr capex
The company will expand the capacity at Aditya Cement Works in Rajasthan by 2.9 million tonnes including the setting up of two grinding units. This entails a capital outlay of Rs. 2,000 crore, which will be funded through a mix of internal accruals and borrowings. This additional facility is expected to be commissioned by March 2015.
The expansion, along with other projects, will take the cement capacity to 61.45 million tonnes, the statement said.
