Mumbai: UltraTech Cement Ltd, India’s largest cement maker, on Saturday said its net profit in the quarter ended 31 December rose 5.13% on a consolidated basis from a year ago because of higher other income.
The company reported a consolidated net profit of Rs594.61 crore in the October-December quarter, compared with Rs565.61 crore a year ago. Other Income rose 9.69% to Rs97.47 crore from Rs88.86 crore a year ago.
Net sales dropped 2.53% to Rs5,927 crore from Rs6,013 crore. Profit before interest, depreciation and tax was Rs1,280 crore as compared to Rs1,274 crore in the corresponding period of the previous year.
On a standalone basis, net sales dropped 1.98% to Rs5,540 crore as compared to Rs5,652 crore in the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs1,210 crore as compared to Rs1,204 crore in third quarter FY16. Profit after tax was up 6.63% from Rs528 crore in the third quarter of FY16 to Rs563 crores in Q3FY17.
The earnings met market estimates. In a Bloomberg poll, two brokers had estimated consolidated net sales at Rs5,982.3 crore and net profit at Rs582.6 crore.
The board of directors have approved up of a 3.5 mtpa integrated cement plant at Dhar, Madhya Pradesh at a total cost of around Rs2,600 crores. Commercial Production from the Plant is expected to commence by Q4FY19. The plant will help in reduction of lead distance and cater to the markets of south-west Madhya Pradesh, where the company is not a significant player, the company said in its press release.
Continuing government spending on infrastructure, development of smart cities, interest rate cuts supported by interest subsidy schemes for housing will be the key demand drivers the company said for the outlook for the company going forward.
UltraTech shares gained 0.44% to close at Rs3,470.20 per share on Friday on the BSE, while the benchmark Sensex index lost 1% to close at 27,034.50 points.