India’s largest cement producer, UltraTech Cement, part of the Aditya Birla group, announced better-than-expected results for the July – September quarter. The company reported net profits of INR4.31 billion, a 28% fall on 3Q16’s INR6.01 billion.
Although down, the results were better than analysts’ forecasts of INR3.82 billion, according to Bloomberg.
Results were impacted “increased depreciation and interest costs” related to UltraTech’s recent acquisition of Jaiprakash Associates’ six integrated cement plants and five grinding units, the company said. The quarter also say increasing cost trends, as a result of rising fuel prices.
The cost of fuel and power rose to INR13.35 billion in the three months to 31 September, up from INR8.79 billion last year, according to UltraTech’s results.
The acquisition of Jairprakash Associates’ cement assets added 21.2 million tpy of cement production capacity to the company, bringing the total capacity to 93 million tpy.
“This acquisition will enhance the company’s footprint into high-growth markets of India,” UltraTech said. “The company is not focused on increasing its presence in the newly-acquired markets and ramping up sales.”
Looking ahead, UltraTech said it expected “government spending on infrastructure, rural and affordable housing [to] be the key demand drivers.”
Read the article online at: https://www.worldcement.com/indian-subcontinent/18102017/ultratech-achieves-better-than-expected-3q17-results/