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UltraTech Cement moves higher after announcing robust Q1 earnings

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Capital Market
Last Updated : Jul 28 2016 | 12:19 AM IST

UltraTech Cement rose 0.48% to Rs 3,516.25 at 14:09 IST on BSE after consolidated net profit rose 29% to Rs 780 crore on 4% growth in net sales to Rs 6538 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 19 July 2016.

Meanwhile, the S&P BSE Sensex was down 47.29 points or 0.17% at 27,699.37.

On BSE, so far 52,000 shares were traded in the counter as against average daily volume of 20,895 shares in the past one quarter. The stock was volatile. The stock rose as much as 1.72% at the day's high of Rs 3,559.90 so far during the day. The stock lost as much as 0.61% at the day's low of Rs 3,478.05 so far during the day. The stock had hit a record high of Rs 3,600 on 5 July 2016. The stock had hit a 52-week low of Rs 2,581.15 on 18 January 2016. The stock had outperformed the market over the past one month till 18 July 2016, gaining 6.21% compared with Sensex's 4.21% rise. The scrip had, however, underperformed the market in past one quarter, advancing 2.72% as against Sensex's 7.48% rise.

The large-cap company has equity capital of Rs 274.44 crore. Face value per share is Rs 10.

The company witnessed improvement in operating costs in Q1 June 2016 on the back of operational efficiencies and a judicious power and fuel mix.

With regard to future business outlook, UltraTech Cement said that cement demand is expected to grow around 7% in the current financial year (FY 2017), given the government's focus on infrastructure development, housing sector, smart cities, roads etc. UltraTech is positioned across the country to meet the rise in cement demand and participate in the next phase of growth in the country, the company said in a statement.

UltraTech Cement has adopted Indian Accounting Standards with effect from 1 April 2016. The figures for Q1 June 2015 have also been restated as per Indian Accounting Standards.

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Among other developments, the scheme of arrangement between the company, Jaiprakash Associates, Jaypee Cement Corporation and their shareholders and creditors for acquisition of the identified cement plants located in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh. Uttarakhand and Andhra Pradesh, having a capacity of 21.20 million tonne per annum (mtpa) has been approved by the board of directors of the company, subject to requisite regulatory approvals.

UltraTech Cement is a leading cement manufacturer in India. It is a part of the Aditya Birla Group.

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First Published: Jul 19 2016 | 2:03 PM IST

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