UltraTech Cement, part of the Aditya Birla Group, posted a decline of 26.15 per cent in its net profit for the quarter ended March 31, at Rs 228.5 crore, compared with Rs 309.5 crore in the previous corresponding quarter.
Net sales during the period rose marginally by 2.65 per cent to Rs 1,909.35 crore against Rs 1,860.1 crore last year. The lower net profit was mainly on account of higher depreciation cost, increased raw material costs and six per cent lower realisation in cement sales. “The input costs were higher this quarter, and in the domestic as well as export markets, realisation was lower on a year-on-year basis,” said K C Birla, chief financial officer.
The cement maker produced five million tonnes in the March quarter, higher by eight per cent compared with last year, with an effective capacity utilisation of 97 per cent.
Though the March quarter was sluggish, the financial year ended March was relatively better for the company. UltraTech’s net profit for FY10 was 12 per cent higher at Rs 1,093.2 crore against Rs 977 crore in FY09. Its net sales during the year rose 10 per cent to Rs 7,050 crore from Rs 6,383 crore last year.
UltraTech to acquire Dubai-based ETA Star Cement
UltraTech Cement has approved the acquisition of Dubai-based ETA Star Cement Company, together with its operations in the UAE, Bahrain and Bangladesh, at a valuation of around $125 per tonne.
Though the company has not yet disclosed how much stake it would take in ETA Star, it said it would have management control and equity stake at all the locations.