Ultratech Cement on Saturday posted nearly two-fold jump in net profit at Rs 617 crore for the October-December quarter this fiscal.
The company had reported Rs 319 crore net profit in the corresponding quarter last fiscal, it said in a statement.
"This quarter has been exceptionally good for Ultratech as the industry registered a remarkable upturn particularly in the West and Northern regions," the company said.
Total sales of the company during the quarter stood at Rs 4,572 crore against Rs 3,715 crore in the October-December quarter of the last fiscal.
Ultratech sold 9.72 million tonnes of cement and clinker in domestic market during the quarter vis-a-vis 9.16 million tonnes a year ago. While cement sales were at 2.49 million tonnes compared to 2.25 million tonnes in the year ago period.
However, its variable cost rose by 16 per cent during the quarter mainly on account of increase in energy cost.
"This is attributable to 30 per cent rise in the price of domestic coal by Coal India, continuous spike in prices of imported coal as also the rupee devaluation by approximately 14 per cent," Ultratech said.
It added that energy cost is expected to escalate with the change in pricing mechanism from Useful Heat Value (UHV) to Gross Calorific Value (GCV) implemented by Coal India with effect from January 1, 2012.
"All of these will put pressure on the company's margins," the company said.
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