Last updated: 18 Oct, 2021 | 02:15 pm
Revenue Growth: Revenue rose 1.6% over the preceding quarter to Rs 12,016.8 crore. Analysts had projected Rs 11,758.6 crore.
Profits below estimates: net profit fell 22.8% quarter-on-quarter to Rs 1,313.5 crore in the three months ended September. Analysts had estimated profits to be around Rs Rs 1,377.9 crore.The strong bottomline performance in the quarter was aided by the low base of the year-ago quarter when the national lockdown adversely affected the company’s performance. However,on a sequential basis the net profits dropped 4.17% from Rs 1774 crores last quarter.
Margins drop: Ultratech’s EBITDA margin dropped from 28% to 22.6% QoQ. Performance was swayed on the back of subdued demand, higher input and freight costs due to soaring fuel prices.
Capacity additions: Ultratech commissioned a new capacity of 1.2 mtpa in the month of October 2021. 0.6 mtpa was commissioned at Patliputra Cement Works in Bihar and 0.6 mtpa at Dankuni Cement Works in West Bengal, which is the first phase of its capacity expansion plans of 19.5 mtpa that were announced in December of last year. These additions will help meet the growing demand in the eastern region. The total cement manufacturing capacity in India for the company now stands at 112.55 mtpa.
Ultratech Cement Quarterly Results Review:
Aditya Birla Group crown jewel Ultratech Cement posted results in line with expectations. Major factors affecting the performance this time were prolonged monsoons which hampered demand, hiked coal prices affected energy costs which constitute 28% of total costs, along with increasing prices of oil causing spikes in freight costs, the company’s overall performance has improved on a YoY basis but marginally reduced in sequential basis terms. Overall, the company witnessed a growth in volumes across regions except central India where demand was more or less stagnant, and eastern India where the volumes went down due to rains and COVID restrictions. Strong demand growth was witnessed in Western India, especially Maharashtra & Gujarat where demand was pushed both by urban and rural demand as well as housing and infrastructure segments.