Aditya Birla group’s UltraTech Cement on Monday reported a 9.9% rise in its consolidated net profit to R722.56 crore for the March quarter compared to R657.20 crore in the year-ago period.
The company’s net sales increased to R6,850.46 crore as against R6,516.52 crore in the same period a year ago.
The total expenses of the company went up by R338 crore in the March quarter, while domestic cement sales grew by 15%. Grey cement sales were 46.93 million tonne for the full financial year as against 43.38 MT in 2014-15, and 13.20 MT for the fourth quarter of 2015-16 as against 11.51 MT in the year-ago period, the company said.
Giving a positive outlook for the cement sector the company said that demand is expected to see a robust growth to the tune of 7% on account of higher government spending on infrastructure sector, and UltraTech Cement is well placed to meet the demand upsurge.
The company further said its ongoing capex programme is on track which includes the commissioning of 25 MW capacity, waste heat recovery systems across its operating units, power generation from waste heat recovery stands augmented to 59 MW.
Further, commissioning of the cement grinding plants at Jhajjar in Haryana, Dankuni in West Bengal and Pataliputra in Bihar, the company’s cement capacity in the country increased to 66.3 million tonnes per annum (MTPA).
The company also commissioned a 2 MTPA cement packaging terminal on the outskirts of Pune, Maharashtra. The company has also entered into definitive agreements with Jaiprakash Associates Limited for the acquisition of identified cement plants of JAL in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh having capacity of 21.20 mtpa at an enterprise value of R15,900 crore.
In a separate BSE filing, UltraTech Cement said its board has recommended a dividend of R9.5 per equity share of R10 each for the year ended March 31, 2016, subject to the approval of the shareholders at the ensuing Annual General Meeting of the company.
It also approved issuance of redeemable non-convertible debentures on a private placement basis for the operations of the company.