UltraTech Cement drops in volatile trade after reporting Q2 results

UltraTech Cement declined 1.59% to Rs 2.908 at 15:20 IST on BSE after consolidated net profit rose 3.14% to Rs 427 crore on 4.02% rise in net sales to Rs 5951 crore in Q2 September 2015 over Q2 September 2014.

The result was announced during market hours today, 19 October 2015.

Meanwhile, the S&P BSE Sensex was up 143.35 points or 0.53% at 27,357.95.

On BSE, so far 49,811 shares were traded in the counter as against average daily volume of 17,630 shares in the past one quarter.

The stock was volatile. At the day's high of Rs 2,995, the stock rose 1.35%. At the day's low of Rs 2,886.05, the stock declined 2.33% so far during the day. The stock had hit a record high of Rs 3,399 on 4 March 2015. The stock had hit a 52-week low of Rs 2,299.55 on 16 October 2014.

The stock had underperformed the market over the past one month till 16 October 2015, rising 0.5% compared with 4.82% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 6.89% as against Sensex's 4.33% decline.

The large-cap cement company has equity capital of Rs 274.42 crore. Face value per share is Rs 10.

UltraTech Cement's profit before interest, depreciation and tax rose 11.75% to Rs 1103 crore in Q2 September 2015 over Q2 September 2014. The combined cement and clinker sales rose 3.04% to 11.51 million tonnes in Q2 September 2015 over Q2 September 2014 while sales of white cement and wall care putty rose 7.69% to 3.22 million tonnes in Q2 September 2015 over Q2 September 2014.

During the quarter, domestic cement sales volume increased by 5% as compared to the same quarter last year. While operating costs were lower as compared to the previous year on account of lower energy costs, the benefit was partially offset due to the District Mineral Foundation levy in terms of the provisions of the Mines and Minerals (Development) Amendment Act, 2015.

The company said its on-going capital expenditure program is on track. During the quarter, UltraTech commissioned 1.6 million tonnes per annum (mtpa) Grinding Unit at Jhajjar, Haryana and 1.6 mtpa Grinding Unit at Dankuni, West Bengal. As a result cement capacity is enhanced to 64.7 mtpa in India. The company also commissioned a 2 mtpa bulk terminal on the outskirts of Pune, Maharashtra. With the further commissioning of a 5 megawatts (MW) waste heat recovery system at Rawan, Chhattisgarh, power generation from waste heat recovery stands augmented to 53 MW.

UltraTech Cement in its outlook said that with the government's focus on infrastructure development, housing sector, smart cities, roads etc., the company is well positioned across the country to meet the expected rise in the cement demand and participate in the next phase of growth in the country.

UltraTech Cement is a part of the Aditya Birla Group, and is a leading cement manufacturer in India.

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