UltraTech Q4 net down 16.27% at Rs 726.20 crore

Company had posted a net profit of Rs 867.32 crore during the fourth quarter of 2011-12

UltraTech Cement today reported a 16.27% decline in its standalone net profit at Rs 726.20 crore for the quarter ended March 2013, largely due to muted sales growth and increased tax outgo.

The Aditya Birla group firm had posted a net profit of Rs 867.32 crore during the fourth quarter of 2011-12.

Its net sales grew by a meagre 1.04% at Rs 5,389.21 crore during the quarter vis-a-vis Rs 5,333.65 crore of the corresponding quarter of FY'12, it said in a filing to the BSE.

Besides, its tax outgo increased by 18.89% to Rs 362.60 crore during the quarter, while total expenses, at Rs 4,435.91 crore, amounted to over 82% of its net sales.

The company did not publish its consolidated results for the quarter and opted to publish only yearly consolidated results.

In a separate statement, UltraTech said its tax outgo increased due to Rs 87 crore it paid as additional deferred tax liability as surcharge on income tax rose during the quarter.

Talking about its performance during the quarter, the company said, "the combined cement and clinker sales of grey cement was almost flat at 11.13 million tonnes (MT), while for white cement, it is 1.56 lakh tonnes."

In terms of UltraTech's consolidated performance in the last fiscal, the company posted a growth of 11.42% in its net profit at Rs 2,677.73 crore as compared to Rs 2,403.26 crore of FY'12. Its net sales in FY'13 grew at the rate of 10.90% at Rs 21156.12 crore.

During the year, its sales of combined cement and clinker remained flat at 40.7 MT for the grey cement, while it was 5.7 lakh tonnes for the white cement.

"The year witnessed continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of softening in prices of imported coal," the company said.

It added that its Board has approved a Rs 2,000 crore investment plan for expanding the capacity of Aditya Cement Works in Rajasthan by 2.9 MT. This includes setting up of 2 grinding units.

"This expansion envisages a capital outlay of around Rs 2,000 crore to be funded through a mix of internal accrual and borrowings. The additional facility is expected to be commissioned by March, 2015," UltraTech said.

During the last fiscal, the company added 2.15 MT capacity and now has a total cement production capacity of 50.90 MT.

In its outlook, the company said that the long term cement demand is likely to grow over 8% and the value drivers for the growth will continue to be housing demand and infrastructure development.

UltraTech shares today closed at Rs 1,878.75 apiece on the BSE, down 2.52% from the previous close.