Companies

UltraTech net more than doubles on better realisation, lower cost

Our Bureau Mumbai | Updated on January 23, 2021

Sales volume increased 14 per cent to 23 million tonnes (20 mt) on the back of strong recovery in demand.   -  REUTERS

UltraTech Cement, an Aditya Birla Group company, has reported that its net profit more than doubled in December quarter to ₹1,585 crore against ₹711 crore logged in same period last year, largely due to higher realisation and lower cost.

Revenue during the quarter was up ₹12,254 crore (₹10,439 crore).

Sales volume increased 14 per cent to 23 million tonnes (20 mt) on the back of strong recovery in demand. Operating Ebitda was up 30 per cent to ₹1,330 a tonne.

Logistics cost

The logistics cost for the company has increased 5 per cent to ₹1,178 a tonne while energy cost declined three per cent to ₹952 due lower pet coke prices and use of green energy. Raw material cost remained flat at ₹501 a tonne on improved clinker conversion.

UltraTech has integrated the grinding unit inherited from Binani Cement acquisition with its own unit in UAE and in the process of disposing non-core assets.

Production cost at Century Cement has come down 12 per cent and volumes have gone up 37 per cent while power consumption has been reduced to seven per cent.

The company repaid debt worth ₹2,696 crore in the quarter under review and bought down overall net debt to ₹9,436 crore.

Recovery from Covid-led disruptiuon of economy has been rapid which fuelled quicker demand stabilisation, supply side restoration and greater cost efficiencies, said the company.

Pent-up demand

While rural and semi-urban housing continues to drive growth, pick-up in government-led infrastructure supported incremental demand. Pent-up urban demand is expected to improve with gradual return of migrant workers, it added.

During the quarter, UltraTech’s Board approved capex of ₹5,477 crore to increase capacity by 12.8 mtpa with a mix of brownfield and greenfield expansion in the east, central and north regions of the country.

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Published on January 23, 2021
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