UltraTech profit up 15% on tax write-back, higher output

MUMBAI, APRIL 25, 2014 : UltraTech Cement, an Aditya Birla Group company, reported a 15 per cent increase in net profit at Rs.838 crore (Rs.726 crore) due to higher production and tax provision reversal of Rs.96 crore. Net sales were up 8 per cent at Rs.5,832 crore (Rs.5,391 crore).

 

However, the company’s net profit for the financial year ended March was down 19 per cent at Rs.2,144 crore (Rs.2,655 crore) even as sales rose marginally at Rs.20,078 crore (Rs.20,023 crore). The company will pay a dividend of Rs.9 a share aggregating to an outflow of Rs.246.82 crore. It will absorb a tax on dividend amounting to Rs.41.95 crore, resulting in a total payout of Rs.288.77 crore, the company said.

UltraTech’s combined cement and clinker sales were up 9 per cent at 12.18 million tonnes (11.13 mt) during the March quarter, while for white cement and wall care putty it was at 3.29 lakh tonnes (lt) (2.92 lt). Cement sales for the year ended March was at 41.47 mt (40.65 mt) and for white cement and wall care putty sales were at 11.42 lt (10.18 lt).

Over the year there was continuing pressure on input and logistics costs, given the increase in rail freight and successive hikes in diesel prices. Although there was some relief on account of softening in prices of imported coal, the impact was negated by depreciation in the rupee, said UltraTech Cement in a statement.

Optimisation of the fuel mix and other initiatives helped maintain costs at the previous year’s level, it added.

The acquisition of Jaypee Cement Corporation’s Gujarat unit for Rs.3,800 crore is awaiting SEBI’s final approval, it said.

The company has earmarked capital expenditure of about Rs.10,000 crore at its existing plants. These projects are likely to be commissioned in a phased manner by 2015. A judicious mix of internal accruals and borrowings has been used to fund the projects, it said.

Shares of the company were down 1 per cent at Rs.2,170 on Wednesday. Business Line