UltraTech doubles Q3 profit on lower costs

Our Bureau Mumbai | Updated on January 24, 2020

Net zooms to ₹712 cr even as revenue dips, as cost of production declines 4%

UltraTech Cement, an Aditya Birla Group company, said on Friday its net profit in the third quarter ended December 2019 almost doubled to ₹712 crore, against ₹377 crore in the previous-year period, on the back of lower costs.

Revenue from operations declined marginally to ₹10,354 crore (₹10,444 crore). The overall cost of production dropped 4 per cent to ₹9,525 crore (₹9,966 crore).

UltraTech’s logistics cost was down 5 per cent to ₹1,108 a tonne. While energy expenses dipped to ₹941 a tonne, raw material prices rose to ₹501 a tonne due to high fly-ash prices. EBITDA per tonne was up 36 per cent at ₹1,075 (₹798).

The company’s sales fell 3 per cent to 19.41 million tonne (19.93 mt).

Its wholly-owned subsidiary UltraTech Cement Middle-East Investments divested its entire shareholding in Emirates Cement Bangladesh and Emirates Power Company to Heidelberg Cement Bangladesh at an enterprise value of $30 million. UltraTech has managed to reduce its net debt from ₹1,994 crore to ₹18,625 crore with the sale of the unit in Bangladesh.

UltraTech Nathdwara Cement, the asset acquired through the insolvency process, was fully integrated with the company. The plants have achieved optimal efficiencies and are PBT accretive, it said.

Capacity acquisition

The 21.2 mtpa cement capacity acquired from Jaiprakash Associates in June 2017 are operating in line with the existing plants of the company, it added. Phase I of the Bara Grinding Unit, with a capacity of 2 mtpa, has been commissioned.

Signs of revival were visible in some markets during the latter part of the December quarter, said the firm. This, together with the government’s commitment to reviving the economy and the thrust on infrastructure spending augur well for the growth of cement demand, it added.

Published on January 24, 2020

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