UltraTech Cement’s Q2 profit jumped over twofold to Rs 12.34 bn
Cement

UltraTech Cement’s Q2 profit jumped over twofold to Rs 12.34 bn

Image courtesy: Magic Bricks

UltraTech Cement reported a 113 per cent jump in its net profit. Its consolidated net surged over twofold to Rs 12.34 billion on a year-on-year (y-o-y) basis for the quarter ended September 30. Reportedly the company’s strong performance is on the back of operational efficiencies, lower finance cost and its ability to serve all Indian markets.

The cement maker’s consolidated net sales rose 7.8 per cent y-o-y to Rs 102.31 billion from Rs 94.86 billion. The consolidated Ebitda was aided by higher volumes, competitive cement prices, lower energy costs and stable logistics. Expenses increased by 37 per cnet y-o-y to Rs 28.30 billion.
Ebitda/tonne of the company registered a strong growth of 30% to Rs 1,387 per tonne. Consequently, the operating margins came in at 28%, a sharp 600-basis point rise.

The volumes during the quarter surged a good 20% y-o-y to 19.21 million tonne from 16 million tonne in the corresponding quarter last year, led by strong rural demand and government spends on infrastructure. The company reported volume growth in the north, central, Gujarat and East regions, whereas volume contracted in south and Maharashtra.

UltraTech has reduced net debt substantially for the second quarter in row. With prudent working capital management and overall efficient operations, the company shaved off Rs 47.28 billion of net debt in the first half of this financial year. The company reduced the net debt by Rs 25.19 billion in the September quarter.

Reportedly the work on the company’s 3.4 MTPA cement capacity addition in Odisha, Bihar and West Bengal has picked up pace and it is expected to get commissioned during FY22 in a phased manner.

The 14.6 MTPA cement plants acquired during the previous fiscal have been integrated and now the company is investing in further improving operations.

In the future, the demand for cement is expected to grow on the back of the government’s boost to 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 bolster demand.

Image courtesy: Magic BricksUltraTech Cement reported a 113 per cent jump in its net profit. Its consolidated net surged over twofold to Rs 12.34 billion on a year-on-year (y-o-y) basis for the quarter ended September 30. Reportedly the company’s strong performance is on the back of operational efficiencies, lower finance cost and its ability to serve all Indian markets.The cement maker’s consolidated net sales rose 7.8 per cent y-o-y to Rs 102.31 billion from Rs 94.86 billion. The consolidated Ebitda was aided by higher volumes, competitive cement prices, lower energy costs and stable logistics. Expenses increased by 37 per cnet y-o-y to Rs 28.30 billion.Ebitda/tonne of the company registered a strong growth of 30% to Rs 1,387 per tonne. Consequently, the operating margins came in at 28%, a sharp 600-basis point rise.The volumes during the quarter surged a good 20% y-o-y to 19.21 million tonne from 16 million tonne in the corresponding quarter last year, led by strong rural demand and government spends on infrastructure. The company reported volume growth in the north, central, Gujarat and East regions, whereas volume contracted in south and Maharashtra.UltraTech has reduced net debt substantially for the second quarter in row. With prudent working capital management and overall efficient operations, the company shaved off Rs 47.28 billion of net debt in the first half of this financial year. The company reduced the net debt by Rs 25.19 billion in the September quarter.Reportedly the work on the company’s 3.4 MTPA cement capacity addition in Odisha, Bihar and West Bengal has picked up pace and it is expected to get commissioned during FY22 in a phased manner.The 14.6 MTPA cement plants acquired during the previous fiscal have been integrated and now the company is investing in further improving operations.In the future, the demand for cement is expected to grow on the back of the government’s boost to 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 bolster demand.

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