Ultratech Cement Q3 PAT rises 8% YoY to Rs 1,708 cr on one-time tax gain

17 Jan 2022 , 02:22 PM

There is a one-time gain of Rs 535 crore in tax for earlier years. During the quarter ended 31st December 2021, the company has reversed accumulated provision for tax amounting to Rs 323.35 crore and accrued Minimum Alternate Tax Credit Entitlement of Rs 211.86 crore.

During the quarter, profit before tax (PBT) tumbled 29.93% year-on-year to Rs 1,634 crore. Profit Before Interest, Depreciation & Taxes (PBIDT) fell 25.94% to Rs 2,490 crore during the period under review.

The company said that after gaining pace in October 2021, demand slowed down substantially in November, 2021 as a result of the construction ban in the NCR, extended monsoons in the South and a few states in the North, sand issues in the Eastern region as well as in parts of Uttar Pradesh, and the Diwali holiday season.

The company has been able to maintain a strong growth trajectory, recording a 13.2% growth in its domestic cement sales volumes in the nine months ended December, 2021, despite a marginal de-growth in the reported quarter.

On the cost front, pet coke and international coal prices have started softening during this quarter, though the prevailing rates are still at elevated levels YoY. Diesel prices are up 24% per cent YoY, despite the recent reduction in duty/other levies by the Central/State Governments.

During the quarter, the company repaid loans amounting to Rs 3,459 crore. The repayments were funded through internal accruals and have reduced the companys exposure to floating interest rate.

The company has commissioned 19 MW of WHRS and 53 MW of solar power. With this expansion the companys green energy share has gone up to 16% which includes 156MW of WHRS and 221MW of solar power.

During the quarter, trade sales were impacted more than non-trade sales, as overall cement demand remained subdued. With the onset of the peak season and rising construction activities, cement demand is expected to revive in Q4FY22, driven by a pick-up in the government-led infrastructure and housing projects. Rural and urban demand is also expected to pick up going forward. All of this augur well for the company, the cement major said in a statement.

Meanwhile, Ultratechs board has approved capex of Rs 965 crore towards modernisation and expansion of capacity at Birla White from the current 6.5 LTPA to 12.53 LTPA, in a phased manner. The capacity expansion will help Birla White strengthen its presence in the growing white cement market, reducing its dependence on high-cost imports.

The company commissioned Line II of the Bara Grinding Unit in Uttar Pradesh, having cement capacity of 2 mtpa. With this expansion, during the financial year 2021-22, the company has commissioned 3.2 mtpa new cement capacity, as planned, taking its total cement manufacturing capacity in India to 114.55 mtpa.

UltraTech Cement, the cement flagship company of the Aditya Birla Group, is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India. With a consolidated grey cement capacity of 119.95 MTPA, it is the third largest cement producer in the world, excluding China.

Shares of UltraTech Cement fell 0.38% to Rs 7626.15.

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