UltraTech February cement sales dip 6 %

The scrip declined on sales figures, ended at Rs 1,900 on BSE

UltraTech Cement, India's largest cement maker, has reported a decline of close to 6% in its sales in the month of February. Hit by the poor sales, shares of the company traded weak and closed flat at Rs 1,900 on BSE.

The Aditya Birla group's firm sold 3.31 million tonne of cement in February against 3.51 million tonne in the corresponding month of the previous year. Its monthly cement production of the Aditya Birla group's firm too dropped to 3.32 million tonne against 3.46 million tonne, down a little above 4%.

Though in the statement to the stock exchanges, company did not say about the reasons which pulled down the sales. Industry experts say winters coupled up with rains for most of the month in the northern region resulted into subdued demand for cement.

"This would be an industry-wide phenomena. In particular, the north-based cement players," explains cement sector analyst at a Mumbai-based brokerage firm. JK Lakshmi Cement also reported flat sales in the month.

Since, Competition Commission of India (CCI) barred cement manufacturers' association from collecting and disbursing data, there is no overall industry statistics available since June last year.