New Delhi: Ultratech Cement Wednesday reported a 37 percent growth in its consolidated net profit to Rs 545.92 crore for the quarter ended December 2015 on lower operating costs and higher sales.
The firm, part of the Aditya Birla Group, clocked net profit of Rs 400 crore in the year-ago period, it said in a regulatory filing.
Total income of the company rose by 4 percent to Rs 6,187.91 crore in the October-December quarter this fiscal from Rs 5,944.47 crore during the same quarter in 2014-15.
Total expenses of the firm grew by 2 percent to Rs 5,334.59 crore from Rs 5,216.52 crore in the reported quarter.
The company said: "During the quarter, domestic cement sales volume increased by 7 percent as compared to the same quarter last year."
Grey cement sales was 11.26 million tonnes (MT) during the third quarter against 10.51 MT, while it was 3.38 lakh tonnes against 3.17 lakh tonnes for white cement and wall care putty, it added.
"Though cement prices remained subdued, the performance during the quarter was encouraging, driven by operational efficiencies, judicious fuel mix and lower energy costs. This has resulted in lower operating costs," Ultratech said.
However, this benefit was partially offset by rise in costs due to District Mineral Foundation levy in terms of the provisions of the Mines and Minerals (Development) Amendment Act, 2015 and amendment to the Payment of Bonus Act, it added.
"Upon enactment of the Payment of Bonus (Amendment) Act, 2015, the company has made additional provision for bonus amounting over Rs 31.39 crore (for the period April 1, 2014 to
December 31, 2015). This has been booked under different heads of accounts," it said.
On acquiring cement plants of Jaiprakash Associates located at Bela and Siddhi in Madhya Pradesh, Ultratech said the same has been approved by the shareholders and creditors of the company. The CCI has approved the transaction and it is now pending approval of the High Courts.
Allowing an appeal filed by Ultratech, the Competition Appellate Tribunal by its order on December 11, 2015 set aside the Competition Commission of India's order and remitted the
matter to CCI for fresh adjudication and pass a fresh order as early as possible, but not later than three months.
"Further, in terms of the order, the company has since received the refund of around Rs 117.55 crore which was deposited with COMPAT," it added.
On outlook, the firm said: "The demand for cement is expected to pick-up in the near term. The governments' focus on infrastructure development, housing sector, smart cities, roads etc, augurs well for UltraTech."
The company is confident of meeting the upsurge in demand and participating proactively in the next phase of growth in the country, it added.
Ultratech shares closed 1.13 percent down at Rs 2,614.55 apiece on the BSE.