UltraTech Cement has said that its net profit has fallen 3 percent to Rs 601 crore rupees during the third quarter of the financial year.

The company had recorded a net profit of Rs 617 crore during the same quarter of the previous year. The figures also showed that the company's net sales increased to Rs 4,857 crore during the this quarter compared to to Rs 4,565 crore during the same period of the previous year.

Brokerage house, Kotak Institutional Equities said in a note that the company is struggling to deal with capacity utilization and lack of growth in volume. It noted that the there are expectations that the volume is set to increase in the coming year. Kotak kept the `sell' rating unchanged for the shares with a price target of Rs 1700.

"Even as the street remains optimistic about higher volume growth from expanded capacities by FY2014E, Ultratech continues to struggle with capacity utilization (at sub-80%) and no volume growth," Kotak said in a note.

The shares of the company fell 2 percent after the company announced its results. The shares are now trading at Rs 1,867, down 2.21 per cent on the Bombay Stock Exchange.