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UltraTech reports a 114% jump in PAT at Rs 1,703 in Q1

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The Economic Times
23rd July, 2021 00:16 IST

Mumbai: UltraTech Cement on Thursday reported a record-high quarterly net profit at Rs 1,703 crore in the June quarter, with the bottom-line at the country’s biggest manufacturer of the primary building material more than doubling from the year-ago period.

Net profit in the June quarter of FY 21 was Rs 794 crore.

Net sales at the Aditya Birla Group flagship climbed 54 per cent to Rs 11,698 crore, fuelled by pent-up demand and a low statistical base. It recorded a volume growth of 48 per cent.

“After a rapid recovery from the Covid-19 led disruption of the economy during FY21, the economy was hit by an unexpectedly virulent second wave, which also marginally impacted cement demand,” Mumbai-based UltraTech said in a statement.

Its production costs during the quarter increased 11 per cent YoY, mainly on account of higher fuel prices. Effective capacity utilization was at 73 per cent during the quarter.

“The company continues to maintain tight control on costs and cash flow with a focus on operational efficiencies. This has enabled UltraTech to achieve an effective capacity utilisation of 73 per cent during the quarter as against 46 per cent in Q1FY21,” UltraTech said in a statement.

EBITDA was at Rs 3,468 crore, against Rs 2,302 crore last year. Net debt was recorded at Rs 5,984 crore, down from around Rs 14,000 crore in the same period last year. Net Debt to EBITDA was at 0.44 vs 1.6 last year.

In December, it announced an investment of Rs 5,477 crore toward increasing capacity by 12.8 million tonnes per annum in a mix of brownfield and greenfield projects. The additional capacity will be created in the east, central and north regions of the country, the company had said.

“The expansion program is on track and estimated to be completed by the end of FY23. On completion, the capacity will be augmented to 136.25 mt,” UltraTech said.

The company also said that Covid caused some delays due to labour shortages and lockdowns. However, it expects to commission all the projects as per the original schedule.

“With projections of a likely third wave, the company is closely monitoring the situation. It remains cautiously optimistic, given its inherent financial and operational resources and the government’s continuing thrust on infrastructure activities and housing construction,” UltraTech said.

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