UltraTech Cement’s consolidated net profit more than doubled to Rs 1,584 crore in the December quarter compared to the same period last year on the back of increased sales.
In the December quarter last year, the Aditya Birla Group company had reported a bottom-line of Rs 711 crore.
Net sales of the company stood at Rs 12,254 crore in the period under review, up 17 per cent from the corresponding period last year fuelled by quicker demand stabilisation, supply-side restoration and greater cost efficiencies.
“While rural and semi-urban housing continue to drive growth, pick-up in government led infrastructure aided incremental cement demand. Pent-up urban demand is expected to improve with the gradual return of the migrant work force,” informed the company in its release.
Meanwhile, the company’s profit before interest, depreciation and tax (PBIDT) was at Rs 3,362 crore in the quarter gone by as against Rs 2,147 crore in the corresponding period of the previous year.
“While fuel prices have increased in recent months, operational efficiencies and tight control over costs, are reflected in the company’s 26 per cent operating margin.
Focus on reducing debt continues with net debt reduction during Q3FY21 at Rs 2,696 crore and year-to-date at Rs 7,424 crore,” informed UltraTech.
During the quarter, UltraTech’s Board approved capital expenditure of Rs 5,477 crore towards increasing the company’s capacity by 12.8 million tonnes with a mix of brown field and green field expansion. The additional capacity is being created in the fast-growing markets of the east, central and north regions of the country.
The 14.6 million tonne cement plants acquired during the previous financial year have been making good progress on integration with production ramped up to nearly 84 per cent toward the exit of Q3.
The timely acquisition has enabled the Company to meet the growing demand in the central and east markets.
Going forward, while UltraTech continues to closely monitor the impact of COVID-19 on its operations, its capital and financial resources remain entirely protected and its liquidity position is adequately covered.
With strong rural growth, revival in manufacturing sentiment, buoyancy in GST and tax collections, UltraTech expects demand to grow on the back of the Government’s push on infrastructure projects.