Ultratech Cement Q1 profit slumps 30% to ₹631 crore on higher petcoke, fuel prices
Ultratech Cement’s revenue rises 30% from a year earlier to ₹8,476 crore in June quarter, while profit before interest, depreciation and taxes falls 2% to ₹1,763 crore
Mumbai: Ultratech Cement’s fiscal-first quarter profit fell 30% on higher petcoke and fuel prices.
Net profit declined to ₹631 crore in the three months ended 30 June from ₹898 crore in the year earlier, the country’s largest cement maker said in a filing on Wednesday.
In a presentation to investors, the company said that logistics costs, which account for 34% of overall expenses, rose 9% from a year earlier to ₹1,199 a tonne. Energy costs rose 18% due to higher prices of petroleum coke and a weakening rupee making imports more expensive. Additional royalties on limestone mines transfer, among other raw material costs, rose 8% from a year earlier. Net profit was also affected by depreciation of ₹486 crore and interest costs of ₹336 crore.
Revenue rose 30% from a year earlier to ₹8,476 crore while profit before interest, depreciation and taxes fell 2% to ₹1,763 crore. Capacity utilization of its total capacity of 92.5 million tonnes per annum (mtpa) stood at roughly 70%.
At the company’s annual general meeting held on Wednesday, K.M. Birla, chairman of Ultratech, said that the company’s acquisition of 21.2 mtpa cement capacity from Jaiprakash Associates Ltd and Jaypee Cement in June 2017 achieved an average capacity utilisation of 70% across all the regions and a cash break-even.
Birla told shareholders that Ultratech is seeking to increase its white cement capacity in the future, and is considering new limestone mining rights in this regard.
The board recommended a dividend of ₹10.5 per share.
Shares of Ultratech fell 1.26% to ₹3,852.55 on BSE on Wednesday.