Samruddhi Cement, the erstwhile cement business of Grasim Industries, which is being merged with UltraTech, has recorded a net profit of `315 crore on net sales of `2,214 crore in the quarter-ended June 2010.
The company was a part of Grasim Industries till October last year and hence, the comparable financial numbers were unavailable. Commenting on sector outlook, the Aditya Birla Group company said the demand for cement is expected to grow 10% this year.
Samruddhi will be merged with UltraTech from August 1. Post merger, the Samruddhi shareholders will get four equity shares of Ultratech for every seven they held. UltraTech will emerge as India's largest cement maker with 43 million tonne of capacity.
In the June quarter, realisations were lower in the southern and western regions due to the over capacity, Samruddhi said. However, the surplus scenario may end in the next six to eight quarters, it added.
The cement industry is growing at 9-11% for the past few years while China, the world's largest market, is growing at 14%. The global market is expected to grow 5% and the Brazil market 4%.
