Companies

UltraTech Q2 net more than doubles to ₹1,235 cr

Our Bureau Mumbai | Updated on October 21, 2020 Published on October 21, 2020

Better realisation, higher output boost financials

UltraTech Cement, an Aditya Birla group company, saw its September quarter net profit more than double to ₹1,235 crore against ₹579 crore in the same period last year on better realisation and higher output.

Revenue from operations were up at ₹10,354 crore (₹9,615 crore).

The company has made a provision of ₹336 crore under various heads while registering a gain of ₹360 crore on reassessment in value of an asset held for sale.

Rise in production

Cement production was up 20 per cent at 19.21 million tonnes while EBITDA per tonne increased 30 per cent to ₹1,387(₹1,069).

Atul Daga, Chief Financial Officer, Ultratech Cement, said the demand is buoyant in rural areas and is expected to pick up further in the second half.

Total expenses were down at ₹8,688 crore (₹8,872 crore). The net debt reduced to ₹12,132 crore against ₹ 14,651 crore in the June quarter.

Energy cost of the company was down nine per cent at ₹937 a tonne while logistics and raw material cost increased marginally by one per cent and three per cent at ₹1,140 a tonne and ₹505 a tonne respectively. Overall production cost was down six per cent in the quarter under review.

The company expects 3.4 mtpa capacity addition in Odisha, Bihar and West Bengal to be commissioned next fiscal in a phased manner.

UltraTech has fully integrated the 14.6 mtpa of cement capacity acquired last fiscal and is investing to improve operational efficiency further. The company expects capital and financial resources to remain protected and liquidity position adequately covered. UltraTech sees demand for cement to grow on the back of Government’s thrust on infrastructure and the expanding rural economy.

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Published on October 21, 2020
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