UltraTech Cement has reported a 140% increase in its net profit at Rs 279 crore Year-on-Year despite increase in input costs. The company said this kind of performance was possible only due to the lower base effect. Sales too climbed 22% at Rs 3,910 crore.
The Aditya Birla Group company in an earnings release said that the overall economic slowdown impacted its performance during the quarter as variable cost rose 14% because of the increase in input and energy costs. The 30% increase in the price of domestic coal, continuous rise in prices of imported coal together with escalation of freight costs due to the diesel price have to an extent constrained the company's performance.
The company has indicated the demand-supply mismatch is likely to continue over the next 2-3 years. At the same time, growing input costs will result in a squeeze in margins.
Meanwhile, its shares were less then a percent down at Rs 1119 at 13:30 hours on the Bombay Stock Exchange
