UltraTech Cement Q3 net up 36% at Rs 546 cr

Cement major that managed to beat sreet estimates expects demand to pick up in near term

UltraTech Cement, India's largest in the sector, has posted a rise of 36.5 per cent in consolidated net profit at Rs 546 crore for the December quarter. In the previous year’s corresponding quarter, the company’s profit stood at Rs 400 crore.

On the back of a seven per cent increase in sales volume and lower energy costs, it managed to beat Street estimates. However, subdued prices all over India remained a dent for the company.

“Though prices remained subdued, the performance during the quarter was encouraging, driven by operational efficiencies, a judicious fuel mix and lower energy costs. This has resulted in lower operating costs,” said the company.

Consolidated net sales grew to Rs 6,108 crore, against Rs 5,832 crore last year, up 4.7 per cent.

In its outlook, the Aditya Birla firm said, “Demand for cement is expected to pick up in the near term. The government’s focus on infrastructure, development, housing sector, smart cities and roads augurs well. The company is confident of meeting the upsurge in demand and participating proactively in the next phase of growth in the country.”

The share price is currently at Rs 2,601, down 1.64 per cent on the BSE.