UltraTech Cement's profit beats estimates

The consolidated net profit rose to Rs 416 cr in the July-September quarter as against Rs 283 cr last year

UltraTech Cement posted 47 per cent increase in the consolidated net profit in the second quarter of FY15 beating street estimates on strong growth in sales.

The consolidated net profit rose to Rs 416 crore in the July-September quarter as against Rs 283 crore last year. The revenue rose to Rs 5,772 crore against Rs 4,849 crore last year.

During the quarter domestic cement sales were up 11 per cent due to higher demand and additional volumes from Jaypee's cement units acquired last year.

The acquisition increased UltraTech's domestic cement capacity to 58.8 million tonnes (mt) a year. The capacity has increased to 60.2 mt a year, with the commissioning of its cement mill in Karnataka in the second quarter. The result exceeded analysts' expectations. They were estimating the company to post stand-alone net profit of Rs 377 crore.

On stand-alone basis UltraTech posted a net profit of Rs 410 crore for second quarter, a growth of 55 per cent over the previous year. Stand-alone sales were up 20 per cent to Rs 5,429 crore.

"For the second quarter UltraTech results were better than estimates. On a standalone basis the topline grew 20 per cent year on year on strong performance on the volumes front and stable cement realisations,'' said Angel Broking in its results note.

"Cement demand is set to grow eight per cent. The key value drivers will be renewed government focus on housing and infrastructure spending," the company said.