UltraTech net rises 10% to Rs 723 crore

Cement major hopes for 7-8% growth in demand in FY17

UltraTech Cement, India’s largest in the segment, has reported an increase of 10 per cent in its consolidated net profit for the quarter ended March.

Its profits stood at Rs 723 crore, compared with Rs 657 crore in the corresponding period last year.

On the yearly front, too, the Birla firm did well with a growth of nine per cent in its consolidated profit after tax at Rs 2,287 crore in FY16 against Rs 2,098 crore in FY15.

Quarterly net sales grew 5.1 per cent to Rs 6,850 crore, while annual net sales were Rs 25,281 crore, up five per cent.

Better growth in sales volume at 15 per cent in the January-March quarter with relatively better prices helped the company post a good show.

“The operating costs reduced with operational efficiencies, a judicious fuel mix and fall in fuel prices,” UltraTech stated.

The board of directors has declared a dividend of Rs 9.5 per share.

In its outlook, the company said demand was expected to grow seven-eight per cent for the next year, on the back of the government’s focus on infrastructure development, housing, smart cities, all of which augur well for UltraTech.

Its shares closed at Rs 3,288 apiece on the National Stock Exchange on Monday, up 0.5 per cent or Rs 16.9 in an otherwise weak market. The Nifty closed 44.25 points lower at 7855.05, while the benchmark Sensex on the BSE closed 159.21 points lower at 25,678.93 points.