UltraTech Cement net down 45 per cent on higher tax outgo

Our Bureau Mumbai | Updated on May 07, 2021

Last year’s profit was boosted by one-time tax write-back of Rs 2,024 cr

UltraTech Cement, an Aditya Birla Group company, reported that its net profit dipped 45 per cent in the March quarter to Rs 1,774 crore against Rs 3,237 crore, on the back of a higher tax outgo.

Moreover, the company had recorded a tax write-back of Rs 2,024 crore in the March quarter last year. This boosted its profit substantially last year.

Revenue from operations during the quarter under review was up 33 per cent at Rs 14,406 crore (Rs 10,854 crore).

The company paid Rs 387 crore as deferred tax in the quarter under review.

The board has recommended a dividend of ₹37 per share, aggregating to a total outflow of ₹1,068 crore for the year ended March.

UltraTech achieved an effective capacity utilisation of 93 per cent during the quarter. It spent Rs 120 crore towards various initiatives undertaken to fight against the Covid pandemic.

It has also undertaken a vaccination programme for over 1 lakh employees and their dependents.

UltraTech has raised $400 million (Rs 2,900 crore) at 2.80 per cent per annum via issue of unconditional, unsubordinated and unsecured dollar denominated notes due on February 16, 2031. The interest is payable semi-annually on August 16 and February 16 of each year, commencing from this August.

The Bonds are listed on the Singapore Exchange Securities Trading.

UltraTech is the first company in India and the second company in Asia to issue sustainability-linked bonds.

It reduced its net debt by Rs 10,264 crore to Rs 6,717 crore in FY'21.

The company will add 19.5 million tonne capacity through expansion covering 5 integrated cement plants and 12 grinding units in the east, central and north regions.

Most of the orders for equipment have been placed and civil work has commenced and commercial production is expected in a phased manner between FY22 and FY23.

Upon completion of the latest round of expansion, the company’s capacity will grow to 136.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China.

The company is closely monitoring the impact of the second wave of the pandemic on its operations. With its focus on operational efficiencies and cost control, UltraTech is better prepared for any resulting slowdown in the economy, it said.

Published on May 07, 2021

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