Ultratech Cement Q3 consolidated net profit rises 8% to Rs 1,708 cr

Cement major Ultratech Cement on Monday reported 8% rise in consolidated net profit at Rs 1,708 crore for the quarter ending December 31, 2021. It was Rs 1,584 crore in the year-ago period.

Consolidated net sales rose marginally to Rs 12,710 crore as compared to Rs 12,144 crore a year ago.

"With the omicron variant of COVID-19 spreading rapidly, its impact on the economy remains to be seen. With business continuity plans in place, UltraTech is better placed to tide over the current wave of the pandemic. As in the earlier waves, it continues to closely monitor the situation and impact on its operations," the company said in a stock exchange filing.

After gaining pace in October 2021, demand slowed down substantially in November, 2021 as a result of the construction ban in the NCR, extended monsoons in the South and a few states in the North, sand issues in the Eastern region as well as in parts of Uttar Pradesh, and the Diwali holiday season, the Aditya Birla Group's flagship company said about its operations.  

"The Company has, yet been able to maintain a strong growth trajectory, recording a 13.2% growth in its domestic cement sales volumes in the nine months ended December, 2021, despite a marginal degrowth in the reported quarter. On the cost front, pet coke and international coal prices have started softening during this quarter, though the prevailing rates are still at elevated levels YoY.Diesel prices are up 24% per cent YoY, despite the recent reduction in duty/other levies by the Central/State Governments," the company said.

At 1408 hours on Monday, the company's scrip on BSE was trading 0.3% lower at Rs 7,630.35.

Revenue from operations rose by 5.89% to Rs 12,984.93 crore during the quarter under review compared to Rs 12,262 crore in the corresponding period of the last fiscal, the company said in a BSE filing.

UltraTech Cement's total expenses were at Rs 11,422.05 crore, up 12.09% in Q3FY 2021-22 as against Rs 10,190.03 crore in the year-ago period.

During the quarter, UltraTech has commissioned 19 MW of WHRS (Waste heat recovery unit) and 53 MW of solar power.

"With this expansion, the Company's green energy share has gone up to 16% which includes 156MW of WHRS and 221MW of solar power, it said.

Over the outlook, UltraTech said though in Q3, trade sales were impacted and demand remained subdued, it expects it to revive in the January-March quarter.

With the onset of the peak season and rising construction activities, cement demand is expected to revive in Q4FY22, driven by a pick-up in the government-led infrastructure and housing projects. Rural and urban demand is also expected to pick up going forward. All of this augur well for the Company, it said.

Moreover, during the October-December quarter, UltraTech repaid loans amounting to Rs 3,459 crore.

"The repayments were funded through internal accruals and have reduced the company's exposure to floating interest rate," the company said.

During the quarter, UltraTech's consolidated sales were at 23.13 million metric tons, down by 3% year-on-year.

"The company has yet been able to maintain a strong growth trajectory, recording a 13.2% growth in its domestic cement sales volumes in the nine months ended December 2021, despite marginal degrowth in the reported quarter," it said.