UltraTech Cement reported a sharp 114 percent jump in its consolidated net profit for the quarter ended June 2021 at Rs 1,700 crore as compared to Rs 794.2 crore in the year-ago period.
The company’s consolidated revenue in Q1FY22 rose 54.2 percent to Rs 11,830 crore as against Rs 7,671.1 core, YoY. Sales volumes grew 47.3 percent YoY to 20.53 MT.
UltraTech Cement’s net profit beat CNBC-TV18 analysts’ poll estimates of Rs 1,428 crore, while its revenue was slightly lower than the estimated Rs 11,980 crore.
“After a rapid recovery from the Covid-19 led disruptions during FY21, the economy was hit by an unexpectedly virulent second wave, which also marginally impacted cement demand. Ultratech is monitoring the impact of the second wave of the pandemic on its operations,” UltraTech Cement said in a regulatory filing.
EBITDA during the quarter increased 59.2 percent to Rs 3,307.5 crore from Rs 2,077.7 crore, while EBITDA margin improved by 88 bps to 27.96 percent from 27.08 percent, YoY. The operational performance was also better than estimates.
UltraTech's Q1FY22 capacity utilization was at 73 percent versus 46 percent, YoY.
The company’s expansion programme is on track and estimated to be completed by the end of FY23. On completion, the capacity will be augmented to 136.25 MT. Covid did cause some delays due to labour shortages and lockdowns. However, the company expects to commission all the projects as per the original schedule, the company said.
“With projections of a likely third wave, the company is closely monitoring the situation. It remains cautiously optimistic, given its inherent financial and operational resources and the government’s continuing thrust on infrastructure activities and housing constructions,” it added.
Speaking on the company's Q1 performance, Mangesh Bhadang of Nirmal Bang Securities said that its numbers were good.
"The revenue is actually down compared to what we were expecting, However, EBITDA performance has been exceptionally good so it is 10 percent above what we were expecting," Bhadang said.
At 2:30 pm, the shares of UltraTech Cement were trading 0.72 percent lower at Rs 7,370.00 apiece on the BSE.