UltraTech Q1 net doubles on better realisation

Our Bureau Mumbai | Updated on July 22, 2021

Revenue increased by 54 per cent, and production volume was up 47 per cent.

UltraTech Cement, an Aditya Birla Group company, net profit in the June quarter more than doubled to ₹1,700 crore against ₹793 crore logged in the same period last year, mainly due to higher production and better realisation.

Revenue from operations increased 54 per cent to ₹11,830 crore (₹7,671 crore). Cement production volume was up 47 per cent to 22 million tonne.

EBITDA ncreased 49 per cent ₹3,512 crore. Net debt plunged to ₹5,984 crore in the June quarter against ₹14,651 crore.

Production costs during the quarter increased 11 per cent, mainly on account of higher fuel prices. The company’s logistics cost was increased 33 per cent to ₹1,187 a tonne, while energy and raw material costs were up 12 per cent and 7 per cent at ₹1,019 a tonne and ₹510 a tonne.

After a rapid recovery from the Covid pandemic last fiscal, the economy and cement demand were hit by an unexpectedly virulent second wave. UltraTech is monitoring the impact of the second wave of the pandemic on its operations.

As part of employees safety, it has undertaken a vaccination programme for all its employees and their dependents, it said in a statement.

The company maintains tight control on costs and cash flow, focussing on operational efficiencies to achieve capacity utilisation of 73 per cent during the quarter as against 46 per cent in Q1FY21.

Despite Covid induced lockdown and labour shortage, the company expects to complete the planned expansion by FY23 to achieve a production capacity of 136 million tonne.

The company’s manufacturing facility at Reddipalayam in Tamil Nadu has met one-fourth of fuel requirements by using waste materials sourced from local municipal corporations and industries. With the increased usage of alternative fuels, the unit is now 16.25 times plastic positive and successfully reduced emission by 2,250 tonne CO2 per annum.

With projections of the third Covid wave, the Company is cautiously optimistic, given its inherent financial and government’s thrust on infrastructure activities and housing construction.

Published on July 22, 2021

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