Ultratech Cement Q3 net dips to Rs 601 crore
Mumbai: Impacted by higher raw material and logistics costs, Ultratech Cement's third quarter net profit dipped marginally to Rs 601 crore, from Rs 617 crore in the same quarter last fiscal.
Net sales of the company, however, increased to Rs 4,857 crore in Q3, compared to Rs 4,565 crore in the same period in 2011-12, Unitech said in a statement on Saturday.
"On the cost front, year-on-year, raw materials and logistics cost were mainly impacted due to increase in railway freight and hike in diesel prices," it said.
"Energy cost, i.e., imported coal remained at USD 100/tonne levels. The benefit of softening in coal prices was partly offset by the depreciation in rupee," it added.
Total expenses of the company rose to Rs 4,072 crore from Rs 3,833 crore a year ago.
The company's on-going capacity expansion plans towards setting up of additional clinkerisation plants at Chhattisgarh and Karnataka were on track.
"These projects are expected to be operational by early FY'14. They will augment the company's cement capacity by 9.2 million tonnes per annum (mtpa) bringing it to a total of 62 mtpa," it added.
Backed by some positive economic sentiments, long-term demand of the building material was likely to see eight percent growth, with housing, infrastructure and allied spending being the key value drivers, the company said.
"However, the surplus scenario is expected to continue over the next three years. Input costs are likely to increase in line with general inflation with margins remaining range bound," it said.