UltraTech Cement reported a decline in its December quarter profit to Rs370 core on lower selling prices and subdued demand
UltraTech Cement, India’s largest cement manufacturer, reported a 38% decline in its third quarter net profit to Rs370 crore from Rs601 crore a year ago. During the December quarter its total sales declined marginally (1.46%) to Rs4,786 crore compared with Rs4,857 crore a year ago period.
In a release, UltraTech Cement, said, “The results for the quarter have been impacted mainly on account of lower selling prices due to the subdued demand. However, on-going cost optimisation measures have helped in containing costs despite the continuing increase in input and logistics cost.”
“The outlook continues to remain challenging. Demand Growth in the long term is likely to be around 8%. The key demand drivers will continue to be housing and infrastructure spends,” UltraTech Cement said.
Independent auditors said the company has not made any provision for the penalty of Rs1,175.49 crore imposed by the Competition Commission of India for alleged cartelisation by certain cement manufacturing companies including UltraTech Cement. However, the auditors have not quantified their report in respect of this matter.
During the December quarter, UltraTech Cement commissioned thermal power plant of 25MW at Andhra Pradesh Cement Works. The Competition Commission of India has approved the proposed combination to acquire cement units of Jaypee Cement Corporation Ltd, of Sewagram and grinding unit at Wanakbori at enterprise value of Rs3,800 crore.
UltraTech Cement closed Monday marginally higher at Rs1720.8 on the BSE, while the S&P BSE Sensex was also marginally up at 21,205.
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