UltraTech cement Q3 net profit drops by 38.45 %

The company's revenue stood at Rs 4786 crore during Q3FY14 against Rs 4857 crore in Q3FY13, showing marginal de-growth of 1.46 per cent on yearly basis.

The company's net profit is down by 38.45 per cent to Rs 370 crore during the said quarter against Rs 601 crore during same period last year. The bad performance by UltraTech during the quarter is mainly due to lower selling prices and subdued demand. However, the on-going cost optimisation measures helped company in containing costs despite of increasing in input and logistics cost.

The EBITDA of the company also took beating and was down by almost 25 per cent to Rs 864 crore in Q3FY14 against Rs 1145 crore in Q3FY13. The finance cost for the company during the said quarter grew by almost 47 per cent to Rs 90.46 crore.

The weaker infrastructure activity and housing activity across the country resulted flat sales growth in cement sector. The combined domestic cement and clinker sales remained flat at 9.7 Million tonnes while it was 2.89 Lakh metric tonnes for white cement and wall care putty. The outlook remains to be challenging and completely depends upon the infrastructural and housing activities which are not expected to accelerate in near future. Hence we recommend our readers to stay away from this stock.