Small BusinessUltraTech Cement net dips 18% to Rs 196 cr
UltraTech Cement, part of the Aditya Birla group, suffered a hit in its net profit for the quarter ended December 31, 2009, due to its large exposure to the southern market, which performed the worst in terms of demand during the quarter.
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The company’s net profit during the quarter dipped 17.65 per cent to Rs 196 crore from Rs 238 crore in the corresponding quarter of the previous financial year. Its net sales grew marginally to Rs 1,652 crore from Rs 1,531 crore — up 1.3 per cent.
The southern market accounts for around 30 per cent of UltraTech’s overall sales. Prices in the region, which had fallen by as much as Rs 70 per 50-kg bag, rose only Rs 10 during the quarter. Moreover, the company witnessed a drop in clinker export realisations due to reduced off-take in West Asian markets.
The company produced 4.4 million tonnes of cement in the quarter, up 10 per cent from the 3.98 million tonnes produced during the same period in the previous financial year. However, sales volume of cement jumped 12 per cent.
On the Bombay Stock Exchange, the company’s stock had fallen 0.57 per cent on Friday to Rs 1,036.75