UltraTech Q2 net up 3%, expects demand to pick in H2 FY16

UltraTech Cement today reported a 3 per cent growth in consolidated net profit at Rs 426.97 crore for the quarter ended September 30, helped by increased sales and better operating margins.
The cement maker, part of Aditya Birla Group, had clocked a net profit of Rs 414.24 crore in the year-ago period.
Total income of the company rose 4 per cent to Rs 6,012.89 crore in the July-September quarter from Rs 5,769.60 crore during the same quarter of 2014-15, it added.
In an investor presentation, the firm said it expects demand for cement to pick up in second half (October-March) of 2015-16.

UltraTech's shares fell 1.76 per cent to Rs 2,903.10 on BSE. The results were announced after market hours.
The combined cement and clinker sales were 11.51 million tonnes (MT) for the September quarter. While, white cement and wall care putty sales were 3.22 lakh tonnes, the firm said in a statement.

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

UltraTech said, its capex programme is on track. During the quarter, the firm commissioned a 1.6 MTPA grinding unit at Jhajjar (Haryana) and a 1.6 MTPA grinding unit at Dankuni (West Bengal).
"As a result, the cement capacity is enhanced to 64.7 MTPA in India. The company also commissioned a 2 MTPA bulk terminal on outskirts of Pune. With further commissioning of a 5 MW Waste Heat Recovery System at Rawan (Chhattisgarh), power generation from waste heat recovery stands augmented to 53 MW.
On outlook, UltraTech said: "With the governments' focus on infrastructure development, housing sector, smart cities, roads etc, UltraTech is well positioned across the country to meet the expected rise in demand and participate in the next phase of growth in the country.