UltraTech Cement Limited, an Aditya Birla Group Company, today announced its unaudited financial results for the quarter ended 31st December, 2007.

Net Sales at Rs.1,382 crores is up by 10% compared to Q3FY07 (Rs.1,260 crores). Profit before Interest, Depreciation and Tax at Rs. 489 crores (Rs.397 crores) rose 23%. Profit After Tax grew by 32% from Rs.212 crores to Rs. 279 crores. Sales of Ready Mix Concrete accounted for around 5% of the Company’s turnover.

The Company produced 3.60 MMT (3.59 MMT) of cement. The effective cement capacity utilisation was 102%. Domestic cement volume registered a growth of 6% from 3.21 MMT in Q3FY07 to 3.40 MMT.

Increase in variable cost per tonne was restricted to 4% as a result of improved production efficiencies. This was despite higher energy costs by 9%, primarily due to escalating coal prices.

UltraTech has earmarked a Capex of around Rs. 3,300 crores, to be spent over the next three years towards expansions, setting up of captive power plants and de-bottlenecking. Of these, capacity expansion at the Company’s Unit in Andhra Pradesh and the first phase of the captive power plant at the Unit in Gujarat are expected to be commissioned in the current quarter. The other projects are progressing on schedule.

The Industry has announced additional capacities of around 90 million tonnes, expected to be commissioned over the next three years. These could result in a surplus scenario thereby putting pressure on prices from end FY09. However, the demand for cement is expected to grow around 10% linked to GDP growth.

Sourced From: Aditya Birla Management Corporation Ltd

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