UltraTech posts 22.17% rise in net profit

UltraTech Cement, the country's second largest cement maker and part of the Aditya Birla Group, has posted a rise of 22.17 per cent in its net profit at Rs 282.88 crore for the quarter ended March, 2008 compared with Rs 231.54 crore in the corresponding quarter last year. Its net sales during the quarter increased to Rs 1,628.69 crore from Rs 1,484.82 crore, up 9.69 per cent.

For the financial year 2007-08, the company's net profit stood at Rs 1007.61 crore against Rs 782.80 crore in FY07. The net sales during the year grew to Rs 5,609 crore from Rs 4,971.98 crore.

Higher realisation and robust growth for cement helped the company come up with good quarterly as well as annual numbers.

In its outlook of the industry, the cement firm said in a statement to the Bombay Stock Exchange said that the overall demand was expected to grow by 9 per cent. However, it added that a surplus of demand over demand on account of  additional capacities of 118 million tonne during the current five year plan (2007-12) was expected to have an impact on domestic cement prices in 2009.

"Continuous government intervention has resulted in uncertain price environment, which together with significant increase in input costs will have an adverse impact on margins," the statement added.