Calcutta, Jan. 20: UltraTech Cement today reported a 38.43 per cent dip in net profit for the third quarter ended December on account of poor sales realisation because of subdued demand.
Net profit stood at Rs 370 crore during the quarter against Rs 601 crore in the year-ago period. Net sales fell to Rs 4,786 crore from Rs 4,857 crore a year ago.
“The results for the quarter have been impacted mainly on account of lower selling prices because of subdued demand. However, on-going cost optimisation measures have helped in containing costs despite the continuing increase in input and logistics costs,” the company said.
Total expenses increased to Rs 4,267 crore from Rs 4,072 crore a year ago. Freight costs rose to Rs 1,119 crore against Rs 1,059 crore. Finance costs also went up to Rs 90 crore from Rs 52 crore.
The company’s domestic cement and clinker sales remained flat at 9.7 million tonnes. The sales volume of white cement and wall care putty rose 10.3 per cent year-on- year to 0.29 million tonnes.
Increased raw material prices and subdued demand have led to a 1.5 per cent decline in the net profit of Asian Paints at Rs 307.5 crore for the third quarter ended December against Rs 312 crore a year ago.
Standalone total income of the country’s leading paint maker rose 12.2 per cent to Rs 2,843 crore from Rs 2,533.7 crore in the same period a year ago.
Though the company got Rs 20.67 crore (included in the other operating income) as an incentive from the Maharashtra government for its Khandala unit, its operations at Sriperumbudur, Tamil Nadu was affected by a strike.