The net profit had shown a surge of 58 per cent from Rs 265 crore to Rs 418 crore during the same period last year. UltraTech’s net revenue on the other hand had also shown a surge of 31 per cent from Rs 1496 crore to Rs 1953 crore during the first financial quarter from April 1 to June 30, 2009, in comparison to the corresponding year during the same period.  

According to industry insiders, the positive result were stimulated by volume growth of 24 per cent and reduction in the variable cost by 7 per cent. It is also attributed to captive power generation and downfall in the prices of imported coal.  

Addressing company’s ninth Annual General Meeting (AGM), chairman of the Aditya Birla Group, Kumar Mangalam Biral said, “Industry demand may grow at 9 per cent for the year given the government initiatives to boost rural development, infrastructure and housing, all of which provide a growth impetus.” Pleased with the first quarter result he further added, “New capacities, which are at various stages of commissioning, will inevitably result in a fall in capacity utilisation from the second half of fiscal year 2010 and squeeze margins.”

Adtiya Birla, chairman of the group also emphasised on various other issues pertaining to the economic growth of UltraTech Cement, he attributed a variety of key measure undertaken by Reserve Bank of India and Central Government for the surge in the construction and infrastructure sector, which ultimately gave rise to the emergence of demand for the cement.