UltraTech Cement net profit falls 11.3%, but tops analysts’ view

Cement maker UltraTech Cement Ltd, a part of Aditya Birla Group, on Monday reported a 11.3% fall in fourth quarter profit, hurt in part by higher expenses. The profit, however, beat Street’s estimates, sending its shares higher by 4.22%.

Consolidated net profit for the quarter ended March 31 fell to ₹726.09 crore from ₹818.56 crore a year earlier. Revenue from operations during the quarter rose 2.9% to ₹7,923.96 crore from ₹7,700.34 crore a year ago, beating analysts’ estimates. Three analysts polled by Bloomberg expected UltraTech to report consolidated profit of ₹632.10 crore while four analysts had expected net sales of ₹6,814.10 crore.

Total expenses during the fourth quarter rose 5.4% to ₹7,110.32 crore. The company said its previously announced acquisition of cement assets from Jaypee Group companies Jaiprakash Associates Ltd (JAL) and Jaypee Cement Corp Ltd (JCCL) has received approvals from the National Company Law Tribunal (NCLT), Mumbai bench, the Allahabad bench, and the Securities Exchange Board of India (Sebi).

“A joint application for transfer of minerals concessions form JAL and JCCL to the company has been preferred with the respective state government offices,” UltraTech said. After the acquisition of these cement plants, UltraTech’s total cement capacity including the overseas operations will stand at about 95.4 million tonne per annum, it said.