Ultratech Cement Q3 net up 7.8% yoy at Rs1,708cr on tax credits from MAT reversals

17 Jan 2022 , 04:03 PM

Ultratech Cement reported 5.9% yoy growth in total revenues for the Dec-21 quarter on consolidated basis at Rs12,985cr. On a sequential basis, the revenues were up by 8.06%.

During the December 2021 quarter, there was a slowdown in demand in Nov-21 due to the construction ban in NCR region as well as extended monsoons in the south. Cement volumes were up 13.2% in the first 9 months of FY22.

During the Dec-21 quarter, Ultratech repaid loans worth Rs3,459cr which resulted in debt/equity ratio falling from 0.53 to 0.22 and the debt coverage ratio improving from 1.85X to 4.39X on a yoy basis.

For the Dec-21 quarter, the operating profits were sharply down by -28.13% on a yoy basis. The sharp fall in the operating profits was largely on account of 33% spike in power and fuel costs amidst higher coal prices.

This hit the operating profits, although some of the losses were redeemed by inventory efficiency gains. Operating margins fell sharply from 19.8% in Dec-20 quarter to 13.44% in the Dec-21 quarter. Operating margins are also lower on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up 7.8% yoy at Rs1,708cr on the back of tax credits and lower interest costs. Due to the loan repayment in the quarter, the interest cost nearly halved.

However the big gains came from a Rs323cr reversals of accumulated tax provisions and MAT reversals of Rs212cr.  PAT margins improved from 12.92% in the Dec-20 quarter to 13.15% in the Dec-21 quarter.

Financial highlights for Dec-21 compared yoy and sequentially

	Ultratech Cements
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 12,985	₹ 12,262	5.90%	₹ 12,017	8.06%
Operating Profit (Rs cr)	₹ 1,745	₹ 2,428	-28.13%	₹ 2,037	-14.34%
Net Profit (Rs cr)	₹ 1,708	₹ 1,584	7.79%	₹ 1,314	30.01%
Diluted EPS (Rs)	₹ 59.19	₹ 54.92		₹ 45.52
OPM	13.44%	19.80%		16.95%
Net Margins	13.15%	12.92%		10.93%