UltraTech net drops 30% on higher interest, depreciation

‘Acquisitions, expansion spurred firm to top slot in India’

July 18, 2018 10:36 pm | Updated 10:36 pm IST - MUMBAI

UltraTech Cement reported a 30% fall in consolidated net profit to ₹631 crore for the quarter ended June 30, due to higher interest and depreciation charges. Net sales rose 27% to ₹8,841 crore as sales volume jumped 34%.

The company’s acquisition of 21.2 mtpa cement capacity in June 2017 has achieved average capacity utilisation of 70% across regions and a cash break-even, the company said in a statement.

The board approved the merger of the cement business of Century Textiles with the company. Century’s cement business comprises three integrated cement units and a grinding unit.

Upon completing the acquisition and with the on-going capacity expansion, UltraTech’s cement making capacity will stand at 111.1 million tonnes per annum.

UltraTech Cement is now the third-largest cement company globally (excluding China) and the largest in India after the acquisition of Jaypee cement, merger of Century Textiles and the commissioning of greenfield facilities, according to chairman Kumar Mangalam Birla.

‘Year of turning points’

Addressing shareholders at the annual general meeting, he said, “Financial year 2018 has been a year of turning points for UltraTech. Two notable ones are: the acquisition of the 21.2 million tonnes cement capacity of Jaiprakash Associates and Jaypee Cement Corporation.

“The second is the commissioning of a 2.5 mtpa greenfield clinker capacity at Dhar, Madhya Pradesh.”

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