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UltraTech Cement shares Q2 financial results

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World Cement,


The company’s strong quarterly performance is on the back of operational efficiencies and its ability to serve all India markets. UltraTech reported robust operating margins at 27% driven by both revenue growth and tight cost management. For the second quarter in a row, the company has reduced net debt substantially. With prudent working capital management and overall efficient operations, the company has shaved off Rs 4728 crores of net debt in the first half of this fiscal year.

As it gradually resumed operations, post lifting of lockdown, UltraTech put together a detailed manual of Standard Operating Procedures giving primacy to safety and laying down robust processes for efficient working conditions in its plants and offices.

Financials

Consolidated Net Sales were at Rs.10231 crores vis-à-vis Rs.9486 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was at Rs. 2830 crores vis-à-vis Rs. 2065 crores in the corresponding period of the previous year. Profit after tax was Rs. 1234 crores compared to Rs. 579 crores in the corresponding period of the previous year.

On a standalone basis, Net Sales stood at Rs. 9895 crores (Rs. 9123 crores). Profit before Interest, Depreciation, and Tax were Rs. 2699 crores (Rs. 1995 crores) and Profit After Tax was Rs. 1209 crores (Rs.639 crores).

Work on the company’s 3.4 million tpy cement capacity addition in Odisha, Bihar, and West Bengal has picked up pace and are expected to get commissioned during FY22, in a phased manner.

Acquisition update

The 14.6 million tpy cement plants acquired during the previous financial year have been integrated and now the company is investing in improving operations further.

Going forward

The company’s capital and financial resources remain entirely protected and its liquidity position is adequately covered. UltraTech expects demand for cement to grow on the back of Government's thrust on infrastructure and the expanding rural economy. The recent policy measures announced by the Reserve Bank of India to support the real estate sector will also aid demand.

Given its Pan-India presence, UltraTech is well-positioned to benefit from demand recovery across the markets.

Read the article online at: https://www.worldcement.com/indian-subcontinent/22102020/ultratech-cement-shares-q2-financial-results/

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