Ultratech Q2FY23 PAT falls -42.5% to Rs756cr on spike in power and fuel cost

21 Oct 2022 , 08:53 AM

Ultratech reported 15.61% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs13,893cr. Sequential revenues were down -8.38%.

For the September 2022 quarter, there was the traditional second quarter weakness due to rains extending. Ultratech saw stable pricing and higher volumes even as capacity utilization improved from 71% to 76% on a yoy basis.

Despite monsoons, the domestic sales volumes were up 9.6% yoy. Its total capacity for cement manufacture is around 122 MTPA globally and is likely to start the new year with an enhanced capacity of 131.25 MTPA.

Consolidated net profit for September 2022 quarter was -42.5% at Rs756cr in the Q2FY23. This was largely triggered by a sharp spike in the cost of power and fuel and also a spike in the cost of freight and transport.

For instance, the power and fuel costs constituting total energy costs were up 58% on a yoy basis. There was a sharp fall in the operating margins too but the enhanced capacity utilization and the expanded capacity will allow the company to take on competition effectively.

Net margins for Q2FY23 stood at 5.44% compared to 10.93% in the year ago period and 10.45% in the sequentially previous quarter.

Financial highlights for Sep-22 compared yoy and sequentially

	Ultratech Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 13,892.69	₹ 12,016.78	15.61%	₹ 15,163.98	-8.38%
Operating Profit (Rs cr)	₹ 1,944.98	₹ 2,763.86	-29.63%	₹ 3,184.44	-38.92%
Net Profit (Rs cr)	₹ 755.73	₹ 1,313.53	-42.47%	₹ 1,584.08	-52.29%
Diluted EPS (Rs)	₹ 26.20	₹ 45.52		₹ 54.91
OPM	14.00%	23.00%		21.00%
Net Margins	5.44%	10.93%		10.45%