UltraTech Cements Q1 profit falls 6% to Rs. 591 Cr

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UltraTech Cements on Monday reported a fall of about 6 per cent in consolidated net profit at Rs. 591 crore for the first quarter that ended on June 30, 2015.

The Aditya Birla Group firm had posted net profit of Rs. 628 crore for the corresponding period a year ago.

Consolidated net sales rose 6 per cent to Rs. 6,372 crore in the quarter under review, as against Rs. 5,989 crore in the year-ago period, UltraTech said in a filing to the BSE.

Cement and clinker sales stood at 12.14 million tonnes as against 11.70 MT a year ago, it said.

“Energy costs improved by 7 per cent. The reduction in fuel prices was partially offset by the increase in railway freight. Input prices remained stable, except for the rise in royalty for Limestone and levies under the Mines and Minerals (Development & Regulation) (MMDR) Amendment Act, 2015,” it added.

UltraTech shareholders and creditors have approved the firm’s acquisition of Jaiprakash Associates’ cement units at Bela and Sidhi in Madhya Pradesh, which have a cement capacity of 4.9 million tonnes per annum (MTPA) and a thermal power generation capacity 180 MW TPP, the company said.

“The Competition Commission of India has already approved the transaction. The transaction is now subject to approval from the High Courts and getting all regulatory approvals,” it added.

UltraTech has also commissioned a 15 MW waste heat recovery system, taking the company’s total power generation capacity from waste heat recovery to 48 MW.

On outlook, the company said, “With the government’s focus on infrastructure development, housing sector, smart cities, roads, etc., the company is positioned across the country to meet the expected rise in demand and participate in the next phase of growth in the country.”