Largest cement maker Ultratech on Friday reported a consolidated net income of Rs 712 crore for the October-December quarter, up 80 per cent from Rs 396 crore in the year-ago period. Consolidated revenue of the Birla Group flagship firm slipped to Rs 10,176 crore from Rs 10,294 crore, the company said in a statement.
However, the management did not offer any reason for the fall in top line or what pushed up the bottom line.
On a standalone basis, net income stood at Rs 643 crore, up from Rs 433 crore in the year ago period, the company said in a statement.
The company said it has made a provision of Rs 133 crore under the legacy dispute resolution scheme 2019, announced by the government as part of other expenditure, against various disputed and contingent liabilities and that had it not been for this the net income would have been higher by this amount.
Since some signs of revival have been visible in some markets during the latter part of the reporting quarter, this, together with the government commitment to revive the economy and the thrust on infrastructure spending, augur well for growth revival, it said as part of its business outlook.
During the quarter Ultratech acquired group company Century’s cement business after the scheme of demerger became effective October 1.
The Century plants are being ramped up and monthly production has touched a capacity utilisation of 79 per cent in December.
There is also a cost reduction mechanism in place to bring operations in line with its existing standards. As much as 55 per cent of sales from Century plants in December were under Ultratech brand.
Brand integration is underway and is expected to reach 84 per cent by the second quarter of next fiscal, it said.
On its Bangladesh operations, Ultratech said its wholly-owned subsidiary Ultratech Cement Middle East divested its entire shareholding in Emirates Cement Bangladesh and Emirates Power Company to Heidelberg Cement Bangladesh at an enterprise value of USD 30.2 million.