UltraTech Cement net up 32% at Rs 279 crore

UltraTech Cement, a part of the Aditya Birla Group, posted a 32 per cent rise in net profit at Rs 279 crore for the quarter ended December 31, 2007, compared with Rs 212 crore in the corresponding quarter of the previous year.

The net sales during the period grew to Rs 1,382 crore from Rs 1,260 crore, up 10 per cent. Higher sales and firm prices of cement helped the company to put on a good show.

The country's second largest cement manufacturer, with an installed capacity of 17 million tonnes per annum (mtpa), produced 3.6 million tonnes of cement at a capacity utilisation of 102 per cent.

The sales grew by 6 per cent to 3.4 million tonnes from 3.21 million tonnes. The sales of ready mix concrete accounted for 5 per cent of the company's turnover during the quarter.

The company has earmarked an investment of Rs 3,300 crore to enhance its capacity to over 22 mtpa in three years.

It is adding 4.9 mtpa at its Tadpatri project in Andhra Pradesh, which is expected to go on stream in the current quarter.

The addition of 90 million tonnes in the next three years could result in surplus stock and thereby bring prices down from FY09-end, the company said in a statement.

However, the demand for cement is expected to grow around 10 per cent, in line with GDP growth.

Shares of UltraTech Cement closed 2 per cent lower at Rs 878.90 on the Bombay Stock Exchange on Friday.