Mumbai [India], January 17 (ANI): UltraTech Cement on Monday said its net profit rose by 8 per cent to Rs 1,708 crore for the third quarter of the current financial year as against Rs 1,584 crore recorded in the corresponding period of last fiscal.
The increase in profit is mainly because of a one-time gain of Rs 535 crore in tax for earlier years.
UltraTech Cement, an Aditya Birla Group company, posted a consolidated net sales of Rs 12,710 crore during October-December 2021 quarter against Rs 12,144 crore recorded during the corresponding period of previous year.
The company's Board at its meeting held on Monday, approved capex of Rs 965 crore towards modernisation and expansion of capacity at Birla White from the current 6.5 LTPA to 12.53 LTPA, in a phased manner.
"The capacity expansion will help Birla White strengthen its presence in the growing white cement market, reducing its dependence on high-cost imports," the company said in a statement.
UltraTech Cement commenced operations from its bulk terminal at Kalamboli, Navi Mumbai. This is the 7th bulk terminal of the Company. The earlier 6 are located at Cochin in Kerala; Mangalore and Doddaballapur in Karnataka; Uran and Pune in Maharashtra and Shankarpalli in Telangana.
"With a capacity to handle 1.2 mtpa cement and considering the large infrastructure development projects in and around Mumbai, the bulk terminal will strengthen the Company to further increase its sales of bulk cement. Cement will be brought in bulk rakes to this terminal from its various manufacturing units. This will effectively help in reducing freight cost, with increase in the usage of rail transportation. This is one more step of the Company in reducing carbon emissions and driving sustainable growth," the company noted in a press statement.
On its business operation, UltraTech said: "After gaining pace in October 2021, demand slowed down substantially in November 2021 as a result of the construction ban in the NCR, extended monsoons in the South and a few states in the North, sand issues in the Eastern region as well as in parts of Uttar Pradesh, and the Diwali holiday season."The Company has, yet been able to maintain a strong growth trajectory, recording a 13.2 per cent growth in its domestic cement sales volumes in the nine months ended December 2021, despite a marginal de-growth in the reported quarter.
On the cost front, pet coke and international coal prices have started softening during this quarter, though the prevailing rates are still at elevated levels YoY. Diesel prices are up 24 per cent YoY, despite the recent reduction in duty/other levies by the Central/State Governments, it noted. (ANI)