UltraTech Posts 3rd Quarter Results

UltraTech Prices

Aditya Birla Group Company UltraTech Cement has reported for Q3 0f 2018 a 11 % drop in net profit at Rs.376 crore against Rs.424 crore reported in the same period last year, against a sharp increase in operational cost.
Net sales were up 20 % at Rs.8,111 crore (Rs.6,752 crore) over the previous year. Domestic sales volume jumped 21 %.
Rising energy and logistics cost coupled with rupee depreciation pushed up operational expenses by 14 %, pulling down profits despite higher sales volume.

With no letup on from high energy prices and rupee depreciation in sight, the cement major may continue to face price pressure and will not be able to pass on the cost increase to customers. Supply is expected to continue to outstrip demand some time, according to cement industry insiders which was earlier highlighted by the Indian Cement Industry body the CMA.

Other Highlights:
Capacity utilization fell to 65 percent from 73 percent in the June quarter.
Sales volume stood at 15.7 million tonnes compared to an estimated 16 million tonnes.
The company’s acquisition of Century Cement is subject to shareholders and regulatory approvals.
Realization per tonne rose 1.1 percent to Rs 5,004.
Ebitda per tonne was down 20 percent to Rs 824.

The share markets reacted to the results and UltraTech share prices fell after release of these results.