UltraTech Cement Limited shares financial results

Recovery from the Covid-19 led disruption of the economy has been rapid. This has been fuelled by quicker demand stabilisation, supply side restoration and greater cost efficiencies.

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 work force.

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 focus on reducing debts continues. Net debt reduction during Q3FY21 was Rs.2696 crores and year-to-date it was Rs.7424 crores.

Financials

Consolidated Net Sales was Rs.12 144 crores vis-à-vis Rs.10 261 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was at Rs.3362 crores vis-à-vis Rs.2147 crores in the corresponding period of the previous year. Profit after tax was Rs.1584 crores compared to Rs.712 crores in the corresponding period of the previous year.

On a standalone basis, Net Sales stood at Rs.1708 crores (Rs. 9814 crores). Profit before Interest, Depreciation and Tax was Rs. 3206 crores (Rs.1950 crores) and Profit After Tax was Rs.1550 crores (Rs. 643 crores).

Corporate developments

During the quarter, UltraTech’s Board approved CAPEX of Rs. 5477 crores towards increasing the company’s capacity by 12.8 million tpy 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. This expansion is in addition to the company’s 6.7 million tpy 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.

Upon completion of the latest round of expansion, the company’s capacity will grow to 136.25 million tpy, reinforcing its position as the third largest cement company in the world, outside of China.

Acquisition update

The 14.6 million tpy 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. The timely acquisition has enabled the company to meet the growing demand in the central and east markets.

Going forward

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.

With strong rural growth, revival in manufacturing sentiment, buoyancy in GST and tax collections, UltraTech expects demand to grow on the back of the government’s push on infrastructure projects.

Given its Pan-India presence, UltraTech is well positioned to support the rising demand for cement in the country.

As always, UltraTech remains committed to all its business associates and stakeholders.

Read the article online at: https://www.worldcement.com/indian-subcontinent/25012021/ultratech-cement-limited-shares-financial-results/