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UltraTech Cement, an Aditya Birla Group company, said on Wednesday its net profit in the March quarter more than doubled to ₹1,034 crore, against ₹446 crore in the same period last year, on the back of a lower base and higher production.
Net sales during the quarter were up 17 per cent at ₹10,739 crore (₹9,168 crore).
The company has announced a dividend of ₹11.50 per equity share, aggregating to ₹316 crore. It will absorb a dividend distribution tax of ₹64.92 crore, taking the total payout to ₹381 crore.
Binani Cement renamed
The company has renamed its recently acquired Binani Cement ‘UltraTech Nathdwara Cement’. It became become a wholly-owned subsidiary of the company last November.
The acquisition provides the company with access to large reserves of high-quality limestone, said UltraTech. It undertook a major overhaul of its plants in the March quarter to improve production efficiencies and achieve capacity utilisation of 72 per cent in March, it added.
UltraTech is in the process of selling non-core assets acquired in the UAE and China and use the proceeds to deleverage the balance sheet. The company’s net debt reduced to ₹19,593 crore in the March quarter from ₹21,798 crore.
It has also completed the integration of a 21.2 mtpa cement capacity acquired from Jaypee Associates and achieved capacity utilisation of 82 per cent.
A planned shutdown was undertaken at its Bela (Madhya Pradesh) plant for cost improvements, the benefits of which will be fully achieved in Q1 FY20, it said.
Having achieved cash breakeven already, the acquisition is now on course to achieve a profit before tax in line with the plan, said the company.
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