UltraTech Cement's Q3 net doubles to Rs 617 cr

UltraTech Cement has posted a 93% rise in net profit at Rs 617 crore for the quarter ended December 31, 2011 as compared to Rs 319 crore in the corresponding quarter in the previous year.

Total income has increased to Rs 4,727 crore in the quarter under review from Rs 3,776 crore in the year ago period.

Net sales of UltraTech stood at Rs 4,572 crore in the October-December quarter compared to Rs 3,715 crore in the same period last year.

The company said in a filing to the Bombay Stock Exchange (BSE) that the quarter witnessed improved demand growth of around 10% on account of a lower base effect in the corresponding period of the previous year. The sector capacity utilisation during the quarter improved to 73% as compared to 68% in the preceeding quarter.

Although post monsoon, the pricing scenario indicated some improvement, the uncertain price secnario is expected to continue.

The company has a capital outlay of over Rs 11,000 crore to be spent on various projects. These projects are being funded through a judicious mix of internal accruals and borrowings, the filing added.

The filing to the BSE also said that the demand is likely to grow around 8%. However, the surplus scenario is likely to continue over the next 3 years. At the same time, growing input costs will result in a squeeze in margins.

Shares of UltraTech Cement were trading at Rs 1,211.20 on the BSE, up 1.22%, at the close of trading hours on Friday.

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