UltraTech net down 31%
High interest cost on the cement plants acquired from Jaypee along with higher fuel cost and depreciation have pulled down the profits of Aditya Birla group firm UltraTech Cement in the July-September quarter.
- Published 19.10.17
Calcutta: High interest cost on the cement plants acquired from Jaypee along with higher fuel cost and depreciation have pulled down the profits of Aditya Birla group firm UltraTech Cement in the July-September quarter.
The company's consolidated net profit for the quarter was down 31 per cent to Rs 423 crore from Rs 614 crore in the year-ago period.
Net sales of the company during the quarter stood at Rs 6,840 crore compared with Rs 5,708 crore in the year-ago period. The finance cost came in at Rs 388.26 crore against Rs 149.58 crore a year ago. Power and fuel expenses during the quarter was Rs 1,411.33 crore compared with Rs 964.68 crore a year ago.
UltraTech on Wednesday said its total capacity stood at 93 million tonnes per annum (mtpa) after it acquired the Jaypee units with capacity of 21.2mtpa. This was the first quarter of operations after the acquisition.
"The most critical aspect has been to improve and stabilise the quality of cement manufactured at these plants. Initial one-time expenses were undertaken to improve the efficiencies and plant maintenance. The company is now focussed on increasing its presence in the newly acquired markets," UltraTech said in a statement.
Ultra Tech said the acquisition would help the company to increase its presence in central India, Himachal Pradesh, eastern Uttar Pradesh and coastal Andhra Pradesh.