Home
>
Articles
>
Ultratech Cement Q2 results were hurt by high input costs but still in line with estimates

Ultratech Cement Q2 results were hurt by high input costs but still in line with estimates

Last updated: 18 Oct, 2021 | 02:15 pm

UltraTech Results: Ultratech Cement Quarterly Results (Q2:2021-22)

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.

Other Highlights: 

  • Volumes: at 21.64 mt vs 21.53 mt, up 0.5%
  • Realisations remain flat at Rs 5553 vs Rs 5495, up 1.1% 
  • Unitary Ebitda Performance declined 18.3% at Rs 1,254 vs Rs 1,536 
  • Logistic cost per tonne rose 3% QoQ due to higher diesel prices by 7% and geographical mix impact. 
  • Raw material cost per tonne rose by 2% QoQ due to rise in slag, gypsum and HSD Prices. 
  • Energy Cost per tonne rose by 8% QoQ due to fuel price impact and annual plant maintenance.

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.

We are a SEBI registered investement advisor
Mutual Funds watchlist
aditya birla sun life flexi cap fund growth direct plan|ABSL low duration fund direct growth|axis bluechip fund direct growth|axis capital builder fund series 4|axis balanced advantage fund direct growth|axis equity saver fund direct growth|axis multicap fund direct growth|axis global innovation fund of fund direct growth|axis long term equity fund growth NAV|axis quant fund direct growth|axis small cap fund direct growth|axis value fund direct growth|baroda dynamic equity fund direct growth|BOI AXA bluechip fund|canara robeco flexi cap fund direct growth|canara robeco small cap fund direct growth|canara robeco value fund direct growth|DSP quant fund direct|franklin india smaller companies fund direct growth|HDFC arbitrage fund direct growth|HDFC balanced advantage fund direct growth|HDFC developed world index fund NAV|HDFC flexi cap fund direct growth|HDFC housing opportunities fund direct growth|HDFC hybrid equity fund direct growth|HDFC nifty 50 index fund|HDFC index fund sensex plan|HDFC mid cap opportunities direct plan growth|HDFC multi asset fund direct growth|HDFC small cap fund direct growth|HDFC top 100 fund direct growth|HSBC midcap fund direct growth|ICICI prudential balanced advantage fund|ICICI bluechip fund direct growth NAV|ICICI prudential commodities fund direct plan growth|ICICI nasdaq 100 fund direct growth|ICICI nifty next 50 index fund direct growth|ICICI small cap fund direct growth|ICICI prudential technology direct plan growth calculator|ICICI ultra short term fund direct growth|IDBI india top 100 equity fund direct growth|IDBI small cap fund direct growth|idfc us equity fund of fund direct growth|kotak short term fund direct growth|kotak emerging equity fund direct growth|kotak multicap fund direct growth|kotak global innovation fund of fund NAV|kotak gold fund direct growth|kotak savings fund direct growth|kotak small cap fund direct growth|L&T emerging businesses fund direct growth|mirae asset large cap fund direct growth|mirae asset midcap fund|motilal oswal nasdaq 100 fund of fund|navi nifty 50 index fund direct growth|nippon india banking and financial services fund direct growth|nippon banking fund direct|nippon india flexi cap fund NAV|nippon india large cap fund direct growth|nippon india pharma fund direct growth|nippon india small cap fund direct growth|PGIM small cap fund direct growth|quant flexi cap fund direct growth|quant infrastructure fund direct growth|quant tax plan direct plan growth|SBI bluechip fund direct growth|SBI corporate bond fund direct growth|SBI equity minimum variance fund direct growth|SBI flexi cap fund|SBI magnum children's benefit fund investment direct plan|SBI nifty index fund direct growth|SBI small cap fund direct growth|SBI technology opportunities fund direct growth|tata banking and financial services fund direct plan growth|tata business cycle fund|tata technology fund direct growth|tata equity pe fund direct growth|tata ethical fund direct growth NAV|tata focused fund direct growth|tata index fund nifty direct plan|tata india tax savings fund direct plan growth|UTI focused equity fund direct growth|UTI nifty index fund direct growth NAV|UTI nifty 50 index fund direct growth