UltraTech's Q1 net down 14% on construction slowdown

UltraTech Cement has reported a 13.5 percent year-on-year decline in net profit for June quarter as construction and infrastructure activities slowed down across states. The Aditya Birla Group company recorded an over 2 percent Y-o-Y decline in sales during the period.

Higher freight and diesel prices led to a rise in logistics and raw materials costs for the company. Even though prices of imported coal are softening, a depreciating rupee has offset the benefit, the company said in a statement.

The company said that since business outlook remains challenging, it can predict only 6 percent growth in current year, but in the long-term, it would be over 8 percent. The firm has earmarked Rs 13700 crore capex to ramp up capacity to around 65 million tonne by 2015.

Shares of the company was up over a percent to Rs 1885 post earnings announcement.

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