UltraTech Cement Net Profit Up By 46%

The Aditya Birla Group Company, UltraTech Cement announced its quarterly results for Q2FY15 on 18th October 2014. On the consolidated basis, the net sales of the company rose by 18% to Rs 5723.3 crore in Q2FY15 as compared to Rs 4849.16 crore in Q2FY14. The increase in the sales was due to higher demand and additional volume from the acquired units in Gujarat from Jaypee Cements. Total sales volume of the company has increased by 12.6% on yearly basis to 10.7 mn mt. Even the net realization has increased by 6.7 per cent in the same period. During the quarter the combined cement and clinker sales was 10.35 Mnt while it was 3.02 LmT for white cement and wall care putty.

The net profit of the company shot up by 46.86% to Rs 415.87 crore compared to Rs 283.16 crore during the same quarter in last fiscal. The rise in the net profit can be attributed to strong sales growth and rise in other income by 97% on yearly basis to Rs 741 crore for second quarter of FY15. 

Looking at other developments during the quarter, the company has commissioned a 1.4 Mnt cement mill at Rajashree cement, Karnataka and a 25MW thermal power plant at Tadipatri, Andhra Pradesh. With this the company's total cement capacity in India has increased to 60.2 million tonne and total power capacity has increased to 733 MW. This caters to around 80% of the company's power requirement. 

The demand for cement is likely to increase by 8% this year and the key value drivers will be renewed government focus on housing and infrastructure spending. The result of the company was in line with the expectation and shares of the company closed at Rs 2450, up by 5.5% from its previous close.