UltraTech’s standalone net profit soars 72%

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Published: October 22, 2019 4:33:24 AM

Volumes, however, fell by 1% to 18.69 million tonne during the quarter. Of this, domestic volume stood at 17.77 million tonne, a decrease of 2% y-o-y, while exports and others went down by 16% to 0.57 million tonne.

UltraTech, standalone, net profit, industry news, UltraTech cement, UltraTech cement share, UltraTech ltd, UltraTech Revenue UltraTech expects the demand to normalise in the remaining two quarters of FY20 on the back of positive demand in parts of north India.

UltraTech on Monday reported a 72% year-on-year increase in its standalone net profit to Rs 639 crore for the quarter ended September. Revenue from operations increased 4.3% to Rs 9,253 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 29% to Rs 1,995 crore while the margins for the quarter stood at 22%, compared with 18% in the corresponding quarter. The consolidated net profit grew 62% year-on-year (y-o-y) to Rs 579 crore. Revenue from operations increased 4% to Rs 9,620 crore.

Volumes, however, fell by 1% to 18.69 million tonne during the quarter. Of this, domestic volume stood at 17.77 million tonne, a decrease of 2% y-o-y, while exports and others went down by 16% to 0.57 million tonne.

UltraTech expects the demand to normalise in the remaining two quarters of FY20 on the back of positive demand in parts of north India.
The company said the quarter witnessed depressed demand on account of extended monsoons and heavy floods in parts of India. The situation was worse in eastern and central India, where Century’s plants are located. The plants also undertook annual shutdowns of 87 days in total during the time period. However, the demand remained favourable in north India.

UltraTech reported improvements in operational costs. The company’s logistics costs declined 4% y-o-y to Rs 1,111 per tonne while energy cost decreased by 9% y-o-y to Rs 1,003 per tonne. Raw materials costs saw a decline by 2% to Rs 495 per tonne.

The company said the board on Monday approved capex of Rs 940 crore to increase grinding capacity to make premium products. The company is planning to increase grinding capacities of plants in Bihar and West Bengal by 0.5 million tonne per annum (MTPA) each and setting up a new grinding unit of 2.2 million tonne in Odisha. The plants will be commissioned by the fourth quarter of the current financial year. Additionally, the Bara grinding unit with capacity of 4 million tonne is under trial run and will be commissioned by the third quarter.

On outlook, company said measures announced by the government to revive the economy and to push infrastructure spending will resonate well with growth in cement demand. Rural demand may also go up due to heavy rains in the country which is beneficial for the kharif crop. The net debt of the company stood at Rs 18,719 crore, compared with Rs 18,565 crore in the first quarter of FY20.

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