Ultratech Q1 net up 14% at Rs 778 cr on higher sales

Aditya Birla group firm Ultratech today reported 14% growth in net profit at Rs 778 crore for the quarter ended June 30 on higher sales.

The company, which is among the top two cement makers in the country, had clocked Rs 683 crore net profit in April-June quarter of the last fiscal, it said in a statement.

Net sales of the company grew by around 17% to Rs 5,075 crore in the reported quarter against Rs 4,352 crore in the corresponding period last fiscal.

Ultratech sold 9.94 million tonnes of cement and clinker during the quarter from 9.48 million tonnes in the year-ago period.

The company said the variable cost went up by 10% in the June quarter compared to first quarter of last fiscal on account of higher energy and raw material prices.

"Although imported coal prices softened by around 19%, the depreciation in rupee by 21% offset the benefit," Ultratech said, adding that cement demand may grow by over 8% with the government's focus on infrastructure development.

"The surplus scenario is expected to continue over the next three years. Any rise in input costs will impact margins," it said.

Competition watchdog CCI had imposed a Rs 1,175.49 crore penalty on Ultratech last month allegedly for forming both price and production cartel.