UltraTech Cement Q3 net profit jumps 122% to Rs 1,584 crore; Domestic volume growth at 14%

Updated : January 23, 2021 03:33 PM IST

Domestic sales volume during the quarter grew 14 percent to 23.88 mt compared with 20.90 mt in the year-ago quarter.

Net debt reduction during Q3 was Rs 2,696 crore and year-to-date it was Rs 7,424 crore

UltraTech Cement on Saturday reported a 122.56 percent jump in its consolidated net profit at Rs 1,584.34 crore for the third quarter of fiscal 2021 as compared to Rs 711.84 crore in the corresponding quarter of last year.

The cement maker’s consolidated revenue from operations during Q3FY21 rose 17.4 percent to Rs 12,254.1 crore from Rs 10.439.3 crore, YoY. Domestic sales volume during the quarter grew 14 percent to 23.88 mt compared with 20.90 mt in the year-ago quarter.

“Recovery from the COVID-19 led disruption of the economy has been rapid. This has been fueled by quicker demand stabilasition, supply side restoration and greater cost efficiencies,” the company said in a regualatory filing.

Operating performance of the company improved significantly as EBITDA increased 56.4 percent to Rs 3,094.3 crore from Rs 1,978.2 crore, while EBITDA margin expanded by 630 bps to 25.2 percent from 18.9 percent, YoY.

“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,” the company statement said.

Net debt reduction during Q3 was Rs 2,696 crore and year-to-date it was Rs 7,424 crore, it added.

During the quarter, UltraTech Cement’s board approved a capex of Rs 5,477 crore towards increasing the company’s capacity by 12.8 mtpa with a mix of brown field and green field expansion.

The additional capacity is being created in the fast-growing markets of east, central and north regions of the country, the company said. This expansion is in addition to the company’s 6.7 mpta capacity addition in UP, Bihar and West Bengal that is expected to be commissioned by FY22 in a phased manner.

On Friday, the shares of UltraTech cement ended 0.22 percent lower at Rs 5,531.15 apiece on the BSE.

Published : January 23, 2021 03:28 PM IST

UltraTech Cement Q3 net profit jumps 122% to Rs 1,584 crore; Domestic volume growth at 14%

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