UltraTech Cement share gains 9% intra day post Q1 earnings
BusinessToday.In July 28, 2020
UltraTech Cement share became the top Sensex and Nifty gainer on Tuesday after the firm reported a 36.4 per cent year-on-year (YoY) fall in net profit for the quarter ended June. Net profit at Rs 806 crore came in above analysts' estimates. The firm logged net profit of Rs 1,267 crore in the corresponding quarter of last year. Brokerage Motilal Oswal had said net sales may fall 33.1 percent YoY while adjusted PAT may drop 59.3 percent YoY.
IDBI Capital expected net profit to plunge 109.8 percent YoY or 103.9 percent QoQ. Buoyed by better-than-expected earnings, UltraTech Cement saw heavy buying in afternoon session.
Share price of UltraTech Cement closed 7.17% or Rs 276.65 higher at Rs 4,135 compared to previous close of Rs 3,859 on BSE.
During the day, the stock gained 9.08% to Rs 4,209.
The stock has risen 9.3% in last 2 days. Ultratech Cement share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 0.79 lakh shares changed hands amounting to turnover of Rs 32.09 crore. Market cap of the firm rose to Rs 1.19 lakh crore.
On Nifty too, the share was top gainer closing 7.02% or Rs 271 higher at Rs 4131 against previous close of Rs 3,860. Intra day, the share gained 9.14% or Rs 353 to Rs 4,213 on NSE.
Revenue fell 32.81 per cent in Q1 to Rs 7,290 crore compared with Rs 10,851 crore in the same quarter last year.
The firm said it achieved 60 per cent capacity utilisation for the first 68 operating days since national lockdown.
"In the available 68 operating days during this quarter, the company kept a tight control on costs and cash flow, and achieved an effective capacity utilisation of 60 per cent across its network of 54 plants around the country," the company said.
UltraTech said it is closely monitoring the impact of Covid-19 on its operations. It added that its capital and financial resources remain entirely protected and its liquidity position is adequately covered.
"General disruption as a result of the lockdown did impact business performance, but with the government taking measured steps towards opening up the economy, some encouraging trends were seen during the latter part of May, driven largely by better than expected pick-up in cement consumption in the rural markets," UltraTech said while adding that its focus remains on conserving cash.