Floods, protest in AP erode UltraTech net 18%

The massive floods in Andhra Pradesh and Karnataka coupled with the Telangana protests hit UltraTech Cement’s bottomline in the third quarter of this fiscal.

Despite a sharp fall in power and fuel costs, the company reported an 18 per cent drop in net profit at Rs 196 crore in the quarter ended December 31 against Rs 238 crore in the same period last year.

Mr K. C. Birla, Executive President and Chief Financial Officer, UltraTech Cement, said the profitability was impacted by the sharp drop in demand in the southern region which contributes about 30 per cent of the company’s sales.

“Notwithstanding the fall in demand, price realisation was hit by new capacity addition of 21 million tonnes in the southern States in the last nine months,” he said.

Demand for cement in the southern region, which includes Andhra Pradesh, Tamil Nadu and Karnataka, grew 3.9 per cent against the industry average of 10.4 per cent in the December quarter, while Andhra Pradesh and Karnataka registered a demand growth of tonnes. Domestic sales rose 12 per cent to 4.34 3.88 mt.

Power and fuel expenses nearly halved to Rs 366 crore (Rs 633 crore) on the back of commissioning of new thermal power plants at various locations.

Domestic price realisation for UltraTech grew 6 per cent to Rs 176 for a 50-kg bag (Rs 166) in the quarter under review. Realisation from clinker exports was down 36 per cent at $32 a tonne (f.o.b.).

From THE HINDU BUSINESS LINE

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One Response to Floods, protest in AP erode UltraTech net 18%

  1. Issac Maez says:

    Thanks for the nice post. I always like to bookmark construction or concrete related posts like this one.

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