Indian cement producer, UltraTech Cement, announced earnings up 18% in 4Q17, as volumes jumped 37%, helped by the integration of the cement plants acquired from Jaypee Group last year. Consolidated net sales stood at INR78.97 billion, compared to INR59.27 billion in the same period in 2016.
Earnings jumped to INR14.94 billion over the quarter, despite an increase in variable costs, a result of rising petcoke and coal prices. A ban on petcoke uses in some areas also adversely impacted performance.
There was also a marked improvement in performance at plants acquired last year from Jaypee Group. Operations at these plants were “in line with the company’s ramp up strategy,” the company said.
Capacity utilisation touched 60% at the acquired plants, from a low of 18% at the time of the acquisition. “Substantial improvements have been carried out at these plants in terms of the their operating parameters,” UltraTech Cement said.
“Appointment of new dealers and retailers in an ongoing programme to increase the reach of UltraTech in the new markets. The acquisition is generating incremental earnings as planned and which are improvement month on month.”
Read the article online at: https://www.worldcement.com/indian-subcontinent/29012018/ultratech-announces-positive-4q17-earnings/