UltraTech Q4 net up 75% to Rs 231cr

UltraTech Cement (UTCL), a part of the Aditya Birla Group, recorded 75 per cent rise in net profit at Rs 231.54 crore in the fourth quarter of FY07 compared with Rs 132.11 crore in the corresponding previous quarter. Net sales in the period grew 38 per cent to Rs 1,465.52 crore (Rs 1,060.35 in the previous comparable quarter).

During FY07, net profit grew over three-fold at Rs 782.28 crore compared with Rs 229.76 crore in FY06. Net sales for the year increased by 49 per cent to Rs 4,910.83 crore (Rs 3,299.45 crore).

A combination of factors including improved capacity utilisation, growth in sales, better price realisation and higher share of blended cement led to the robust growth during the year.

The share of blended cement in the domestic market grew to 60 per cent from 51 per cent in FY06.

UltraTech, the country's second largest cement manufacturer, produced 14.63 million tonne cement in FY07, up 6.79 per cent compared with 13.7 million tonne produced in FY06.

The company's effective capacity utilisation in FY07 stood at 101 per cent compared with 88 per cent during the previous financial year.

On the export front, the company, second only to Ambuja Cements, registered an increase of 34.63 per cent. Exports grew to 3.46 million tonne (2.57 million tonne). Most of the company's exports is directed to Sri Lanka.

In order to lower its power costs, the cement major plans to commission captive power units in 2008 at its facilities in Andhra Pradesh, Chhattisgarh and Gujarat. It is also setting up ready-mix concrete plants across the country. In a statement, the company said, "Ready-mix concrete is likely to see substantial growth in the years to come."

In its industry outlook, the company stated demand was expected to grow 9 per cent in FY08.

However, it expressed concerns over the availability and rising prices of quality coal. It also added that FY09 is likely to see a surplus scenario owing to addition of new capacities.