UltraTech Cement Q3 Results: Net Profit More Than Doubles To ₹ 1,584 Crore

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UltraTech Cement Q3FY21 Results: Aditya Birla group’s UltraTech Cement on Saturday, January 23, reported over two-fold jump in consolidated net profit to ₹ 1,584.58 crore in the third quarter of the financial year. The leading cement producer reported a net profit of ₹ 711.17 crore in the year-ago period, UltraTech Cement said in a BSE regulatory filing. The company’s revenue from operations stood at ₹ 12,254.12 crore, up 17.38 per cent, during the October-December quarter under review as compared to ₹ 10,439.34 crore in the corresponding period of the last fiscal year.

The consolidated net sales were Rs.12,144 crore as compared to Rs.10,261 crore in the year-ago period. Profit before interest, depreciation, and tax was at Rs.3,362 crore as against Rs.2,147 crore in the year-ago period.  (Also Read: UltraTech Profit Falls 38% To ₹ 797 Crore In June Quarter )

UltraTech Cement’s total expenses were at ₹ 10,190.03 crore in the third quarter of the financial year, as compared to ₹ 9,611.08 crore, down 6.29 per cent.

The domestic sales volume went up by 14 per cent. “Pent-up urban demand is expected to improve with the gradual return of the migrant workforce,” said the company in the regulatory filing.

According to UltraTech Cement, even though fuel prices have increased in the recent months, the operational efficiencies and tight control over costs boosted the operating margin, which was at 26 per cent.

During the third quarter, the company reported volume growth of 14 per cent to 22.82 million tonnes. The net debt reduction during the October-December quarter was ₹ 2,696 crore and was ₹ 7,424 crore year-to-date. 

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“Recovery from the COVID-19 led to the disruption of the economy. This has been fuelled by quicker demand stabilisation, supply-side restoration and greater cost efficiencies,” UltraTech Cement said in a post earning statement.

During the quarter, UltraTech’s board approved a capex of ₹ 5,477 crore towards the increasing capacity by 12.8 mtpa (million tonnes per annum) with a mix of brownfield and greenfield expansion — in the markets of the east, central and north regions of the country.

The expansion is in addition to the company’s 6.7 mtpa capacity addition that is presently underway in Uttar Pradesh, Odisha, Bihar, and West Bengal, which has picked up the pace and is expected to get commissioned by the next financial year.

UltraTech Cement expects demand to grow amid a revival in manufacturing sentiment, buoyancy in GST and tax collections, and government’s push on infrastructure projects.

At 4:00 pm, on Friday, January 22, shares of UltraTech Cement settled 0.22 per cent lower at ₹ 5,531.15 apiece on the BSE.