UltraTech Cement, an Aditya Birla Group company, on Saturday posted a 97% rise in net profit at R550 crore in the second quarter of the current fiscal year from Rs. 279 crore in the year-ago quarter on a strong pick-up in demand for cement.
Quarterly net sales stood at Rs. 4,700 crore compared to Rs. 3,908 crore in the corresponding period of the previous fiscal year, a rise of 20%. However, variable costs rose by 8% in the quarter ended September 2012.
"This was mainly on account of higher raw material prices, which are linked to the last increase in railway freight and increase in diesel prices," the company said in a press release.
The company's initiative towards setting up additional clinkerisation plants at Chhattisgarh and Karnataka are expected to be operational from early 2013-14. Consequently, the company's cement capacity will be enhanced by 10.2 million tonnes per annum, it said.