Ultratech Cement rose 1.74% to Rs 4,626.45 after the company's consolidated net profit surged 113.15% to Rs 1,234.38 crore on 7.68% increase in revenue from operations to Rs 10,354.21 crore in Q2 September 2020 over Q2 September 2019.
Consolidated profit before tax (PBT) soared 64.63% to Rs 1,464.98 crore in Q2 September 2020 as against Rs 889.84 crore in Q2 September 2019. Current tax expense for the quarter jumped 87.53% to Rs 317.67 crore as against Rs 169.39 crore in Q2 September 2019. The Q2 result was declared during trading hours today, 21 October 2020.
The company's strong quarterly performance is on the back of operational efficiencies and its ability to serve all India markets. UltraTech reported robust operating margins at 27% driven by both revenue growth and tight cost management. For the second quarter in a row, the Company has reduced net debt substantially. With prudent working capital management, and overall efficient operations, the company has shaved off Rs 4,728 crore of net debt in the first-half of this fiscal year. As it gradually resumed operations, post lifting of lockdown, UltraTech put together a detailed manual of standard operating procedures giving primacy to safety and laying down robust processes for efficient working conditions in its plants and offices.
Work on the company's 3.4 mtpa cement capacity addition in Odisha, Bihar and West Bengal has picked up pace and are expected to get commissioned during FY22, in a phased manner. The 14.6 mtpa cement plants acquired during the previous financial year have been integrated and now the company is investing in improving operations further.
Going ahead, the company said its capital and financial resources remain entirely protected and its liquidity position is adequately covered. UltraTech expects demand for cement to grow on the back of government's thrust on infrastructure and the expanding rural economy. The recent policy measures announced by the Reserve Bank of India to support the real estate sector will also aid demand. Given its pan-India presence, UltraTech is well positioned to benefit from demand recovery across the markets. UltraTech said it continues to remain committed to all its business associates.
UltraTech Cement manufactures a range of products that cater to construction needs from foundation to finish, including Ordinary Portland Cement (OPC), Portland Blast Furnace Slag Cement (PSC), Portland Pozzolana Cement (PPC), white cement including white cement-based products and ready-mix concrete.
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