India’s largest cement maker, Ultratech, posted a set of good numbers for Q1FY18 but concerns remain over lower realization in monsoon, higher fuel price and ability to ramp up addition of JP cement. Its consolidated net sales was at Rs.6938 crore, up 6% (YoY). EBITDA rose 11% at Rs.1798 crore and it ended the quarter with a net profit at Rs.897 crore, up 15%. What really helped boost the profits, more than operational reasons was on account of lower finance cost – down 22% at Rs.141crore and other income rose 10% to Rs.166 crore. But the 33% rise in power and fuel costs at Rs.1318 crore did not go too well with the market – the stock tanked after the numbers and even today, remain amongst the top losers. The company, which uses petcoke as its main fuel – 70% of its fuel mix and this has seen a price rise of over 50% on a YoY.

The company completed acquisition of the cement plants of Jaiprakash Associates and Jaypee Cement, located in the States of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh with a capacity of 21.2 million tons. With this acquisition the cement capacity of the Company stands at 93 mtpa.