UltraTech Cement reported a drop in sales and net profit in 3Q14

Indian cement manufacturer UltraTech Cement has released its standalone unaudited results for 3Q14 and the nine months ending 31 December 2013.

Results for 3Q14

• The company reported a 38.44% y/y decrease in net profit in 3Q14 to Rs.369.76 crore compared to Rs.600.81 crore in 3Q13.
• Net sales fell by 1.46% y/y to Rs.4786.37 crore in 3Q14.
• Total income from operations fell from Rs.4882.07 crore in 3Q13 to Rs.4817.85 crore in 3Q14.

Results for the first nine months of FY14

• The company posted a fall in net profit from Rs.1929.23 crore for the nine months ending 31 December 2012 to Rs.1306.47 crore for the nine months ending 31 December 2013.
• Net sales declined from Rs.14 628.73 crore in the first nine months of FY13 to Rs.14 246.01 crore in the first nine months of FY14.
• Total income from operations decreased to Rs.14319.92 crore compared to Rs.14701.57 in the first nine months of FY13.

The lower sales and income are attributed to a decrease in the retail price of building materials as a result of poor demand in the country. The company has anticipated long-term demand growth to be around 8%, with investment in housing and infrastructure as the most important demand drivers.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/20012014/ultratech_reported_a_drop_in_sales_and_net_profit_in_3q14_615/