Ultratech Cement Q2 profit jumps 72% to Rs 639 crore, board approves capex of Rs 940 crore
BusinessToday.In October 21, 2019
Ultratech Cement, a part of Aditya Birla Group company, on Monday reported a 72.3 per cent year-on-year (y-o-y) rise in profit after tax (PAT) at Rs 639.20 crore for the second quarter ended September 30, 2019.
"The country's largest cement company had posted net profit at Rs 371 crore in the year-ago period," UltraTech Cement said in a filing to the Bombay Stock Exchange.
Net sales for the quarter stood at Rs 9,129 crore as compared to Rs 8,710 crore in the previous year, registering a y-o-y growth of 4.81 per cent.
The Mumbai-based company's Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 29 per cent to Rs 1,995 crore in Q2FY20 as against Rs 1,544 crore in Q2FY19.
The EBITDA margin increased by 4 percentage point to 22 per cent in Q2FY20 as compared to 18 per cent in Q2FY19.
The company's raw material cost dipped 2 per cent YoY due to reduction in slag slag consumption.
On the consolidated basis, the company's profit jumped 62 per cent to Rs 579 crore during the July to September quarter of current financial year from Rs 357 crore in the year-ago period. Net sales climbed to Rs 9,491 crore compared to Rs 9,088 crore in Q2 FY19.
The consolidated sales volume of UltraTech Cement declined by 1 per cent to 18.69 metric tonnes during the quarter ended September 2019 from 18.88 metric tonnes in the last fiscal.
As of September 2019, the company's consolidated net debt stood at Rs 20,619 crore as compared to Rs 22,111 crore as on March 31, 2019, registering a decline of 1,492 crore.
The company board has approved a capital expenditure of Rs 940 crore for making premium products with an increase in its grinding capacities in Bihar and West Bengal by 0.6 million tonnes per annum each and a new grinding unit of 2.2 million tonnes in Odisha. All the plants will be commissioned by January to March 2021.
"On the basis of positive demand seen in north India during Q2 as many parts were not impacted by heavy rains and floods, there is a good possibility of normalised demand for cement going forward," UltraTech Cement said.
The government's firm commitment to revive the economy and thrust on infrastructure spending augur well for the growth of cement demand. The heavy rains should also prove beneficial for the kharif crop which should again help revive rural demand, it added.
Following Q2 results, shares of UltraTech Cement closed trade at Rs 4,295.50 apiece, up 0.89 per cent, on the BSE.
Edited by Chitranjan Kumar