Ultratech Posts 46-Pc Rise In Q2 Net

UltraTech Cement (UCL), the country''s second largest cement maker and part of the Aditya Birla Group, has reported a 45.84% rise in its net profit at Rs 185.86 crore for the quarter ended September 30, 2007 as against Rs 127.44 crore in the corresponding quarter last year. Net sales during the quarter grew 16.81% to Rs 1,173.41 crore compared with Rs 1,004.54 crore.

The quarter saw the operating profit of the company rise to Rs 355.36 crore from Rs 266.39 crore, up 33.40%. Earnings per share for the quarter stood at Rs 14.93 as against Rs 10.24.At 85% capacity utilisation, the company produced 3.34 million tonne of cement during the quarter from 3 million tonne in the corresponding quarter last year. It sold 3.15 million tonne, up 12%, compared with 2.8 million tonne last year.UltraTech, with its current capacity of 17 million tonne per annum (mtpa), has earmarked a capital expenditure of Rs 3,300 crore to take its production capacity to over 21 mtpa in the next three years. It is also in a process of setting up ready mix concrete (RMC) plants across the country. The firm thinks RMC has huge growth potential in the country.

The industry, overall, is adding over 90 million tonne of capacity in the next three years. It said that fresh additions of capacities could result in a surplus scenario, thereby putting pressure on prices by FY09-end.