UltraTech Q2 net almost doubles, warns on costs
MUMBAI (Reuters) - UltraTech Cement(ULTC.NS), India's biggest cement producer, reported a near doubling of profit in the quarter to the end of September from a low base but warned of higher costs for materials, fuel and freight.
Demand for cement in India, the world's second-largest producer after China, is expected to rise about 8 percent during the fiscal year that ends in March, driven by a government push to expedite infrastructure projects to revive growth.
Sales growth across the sector has been slow this year as a result of sluggish homebuilding and construction in Asia's third-largest economy.
Margins of cement makers have come under pressure in recent months due to an increase in the cost of fuel and transport. Ultratech's variable costs rose 8 percent in the quarter from a year previously, the company said on Saturday.
In September, the government hiked diesel prices by 14 percent and that will have a further impact on cement producers.
Major rivals Ambuja Cements (ABUJ.NS) and ACC Ltd (ACC.NS) warned this week that rising fuel and freight costs could nullify increased demand over the coming months.
UltraTech is among a group of cement makers fined a total of $1.1 billion in June for price fixing.
The company, part of the diversified Aditya Birla Group, said its additional capacity of 10.2 million tonnes per year at plants in Chhattisgarh and Karnataka would be operational in the early part of the fiscal year that begins in April 2013.
UltraTech reported a 97 percent rise in standalone profit to 5.5 billion rupees for the July-September quarter, falling short of market estimates of 5.89 billion rupees, according to Thomson Reuters I/B/E/S.
Net sales rose 20 percent to 47 billion rupees.
(Reporting by Henry Foy; Editing by Paul Tait)
- Tweet this
- Share this
- Digg this
- Two Ukrainian fighter jets shot down over rebel-held territory
- UPDATE 2-Concordia finally heads for scrapyard after massive salvage operation
- UPDATE 2-U.S. SEC adopts long-awaited reforms for money market funds
- UPDATE 5-TransAsia Airways plane crashes in typhoon-hit Taiwan, killing 47
- Hamas tactics exact high toll in Israeli ground thrust
India will not support a trade facilitation protocol ahead of a July 31 deadline unless its concerns about subsidies are met, two senior government officials said on Wednesday, sticking to a hard line critics say could derail a landmark global trade deal. Full Article
Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article