Cement major Ultratech reported sales of Rs 5,490 crore for the third quarter ended December 31, up 15% year-on-year. Profit before interest, depreciation and tax stood at Rs 990 crore compared to Rs 864 crore in the corresponding period last year. Net profit fell marginally from Rs 370 crore in Q3 FY14 to Rs 364 crore in Q3 FY15.
Despite rising raw material and logistical costs, Ultratech Cement said the “on-going cost control measures” and a year-on-year increase of 11.3% in volumes helped improve cost-efficiency. Blended realisations improved from Rs 46.61 crore/tonne in Q3 FY14 to Rs 48.05 crore/tonne in Q3 FY15.
Ultratech Cement expects long-term demand growth to be muted at around 8% while housing and infrastructure expenditure is likely to be the key driver of demand. It expects the acquisition of Jaiprakash Associates’ cement units in Bela and Sidhi in Madhya Pradesh to “propel the company’s cement capacity in India from approximately 60 mtpa to approximately 65 mtpa.” Ultratech expects its total capacity in India to stand at approximately 71 mtpa in the year 2016.
Ultratech Cement had acquired Jaiprakash Associates’ cement units in Bela and Sidhi in Madhya Pradesh. The plants have a capacity of 4.9 mtpa and 180 MW TPP. Ultratech took on its books a debt of Rs 626.50 crore and negative working capital of Rs 160.50 crore.