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UltraTech Cement Q3 results: Net profit soars 122% to Rs 1,584 crore

Mumbai: Aditya Birla Group’s, cement flagship, UltraTech Cement Ltd on Saturday reported a net profit of Rs 1,584 crore, up by 122% year-on-year as against a profit of Rs 712 crore in the same period last year on the back of demand pick up from government infrastructure projects.

“Recovery from the Covid-19 led disruption of the economy has been rapid. This has been fueled by quicker demand stabilization, supply side restoration and greater cost efficiencies,” the company said in a media statement.

The company’s consolidated net sales was Rs 12,144 crore as against Rs 10,261 crore over the corresponding period of the previous year. On a standalone basis, net sales stood at Rs. 11,708 crore.

While fuel prices have increased in recent months, operational efficiencies and tight control over costs are reflected in the company’s 26% operating margin, the media statement said.

UltraTech’s profit before interest, depreciation and tax was at Rs.3,362 crore Rs.2,147 crore in the corresponding period of the previous year.

“While rural and semi-urban housing continue to drive growth, pick-up in government led infrastructure aided incremental cement demand. Pent-up urban demand is expected to improve with the gradual return of the migrant workforce,” the company said.

During the quarter, UltraTech’s board approved a capex of Rs. 5,477 crore towards increasing the company’s capacity by 12.8 mtpa with a mix of brown field and green field expansion.

“The additional capacity is being created in the fast-growing markets of the east, central and north regions of the country,” the company said.

This expansion is in addition to the company’s 6.7 mtpa capacity addition that is currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has picked up pace and is expected to get commissioned by FY22, in a phased manner, the company said.

As per UltraTech, upon completion of the latest round of expansion, the company’s capacity will grow to 136.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China.

The 14.6 mtpa cement plants acquired during the previous financial year have been making good progress on integration with production ramped up to nearly 84% toward the exit of Q3.

Company’s net debt reduction during Q3FY21 was Rs.2,696 crore and year-to-date it was Rs. 7,424 crore.

“While UltraTech continues to closely monitor the impact of COVID-19 on its operations, its capital and financial resources remain entirely protected and its liquidity position is adequately covered,” the company said.

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