UltraTech net up 29%

UltraTech Cement, part of the Aditya Birla Group, has posted a rise of 29% in its net profit for the year ended March, 2008 at Rs 1,008 crore compared to Rs 782 crore in the previous financial year. The net sales of the company during FY08 grew to Rs 5,509 crore from Rs 4,911 crore, up 12.18%. EPS for FY08 was Rs 80.9 against Rs 62.8 last year. The company produced 15.1 million tonnes of cement with an effective capacity utilisation of 101%.

For the quarter ended March, the net profit rose by 22% to Rs 283 crore from Rs 232 crore in the previous corresponding quarter. The net sales during the quarter stood at Rs 1,602 crore against last year's Rs 1,465 crore.

In the last quarter, UltraTech commissioned its new clinkerisation unit in Andhra Pradesh where as the remaining capacity expansion in Andhra and the grinding unit in Karnataka are expected to go on stream in the first half of FY09. Once the cement making unit in Andhra Pradesh commissions, the company's overall capacity will shoot up to 23.1 million tonnes.

The company has issued cautious business outlook for the current year. It expects the overall cement demand in FY09 to grow by 9 per cent. However, continuous government intervention has resulted in uncertain price environment, which together with significant increase in input costs will have an adverse impact on margin going forward.