UltraTech Cement, the country’s largest cement company with a capacity of 52 million tonne a year, has reported a rise of about 19% in its net profit at Rs 867 crore for the March quarter as compared to Rs 726 crore, beating estimates on higher volumes. The company’s net sales rose 18.8% over the same period to Rs 5,337 crore.
The company has posted 74.20% rise in its net profit at Rs 2,446.19 crore for the year under review as compared to Rs 1,404.23 crore in the previous year. Total income rose 38.74% to Rs 18,685.00 crore for FY12 as compared to Rs 13,468.03 crore in FY11.
Demand for cement in India, the world’s largest producer after China, is expected to rise 7-8% this year as lower interest rates help to kick-start construction activity, but rising costs would force companies to increase prices to protect margins.
Part of the diversified Aditya Birla Group, UltraTech competes with Holcim-controlled ACC and Ambuja Cement as well as Jaiprakash Associates in the Indian market.