Higher sales fuel UltraTech’s Q4 profit: Key takeaways
Ebitda jumped 29.90 per cent YoY to Rs 2,212 crore in Q4FY19.
Shares of the company pared earlier losses after earnings announcement. The scrip was trading 1.63 per cent up at Rs 4272.20 at around 2.32 pm (IST), while the BSE Sensex was up 0.72 per cent at around the same time.
Here are top takeaways from UltraTech's fourth quarter earnings:
Bottomline: Standalone profit jumped 108.52 per cent year-on-year to Rs 1,017.47 crore during the quarter under review. The cement major had reported a profit of Rs 487.95 crore in the corresponding quarter last year, when the figure took a hit of Rs 226.28 crore due to stamp duty on assets acquired in business combination.
Topline: Net sales increased 18.10 per cent to Rs 10,334 crore in Q4FY19 over Rs 8,750 crore last year. Domestic sales volume jumped 16 per cent over Q4FY18.
“The clinker facility and cement grinding facility at Manavar, District Dhar, Madhya Pradesh have stabilised, with the clinker capacity operating at 100 per cent utilisation. Variable cost were up 3 per cent YoY on account of higher fuel prices and impact of rupee depreciation,” UltraTech said in a release.
Bonanza to shareholders: The board recommended a dividend of Rs 11.50 per equity share for the year ended March 31, aggregating Rs 315.84 crore. The company will absorb the dividend distribution tax amounting to Rs 64.92 crore, resulting in total payout of Rs 380.76 crore.
Outlook for the industry: The company also highlighted that the cement industry started witnessing pick-up in demand since FY18, achieving double-digit growth since the last two years, after a period of tepid growth. However, there continues to be relatively low increase in new capacity.
Going forward, the company also sees sustained demand for cement due to government thrust on infrastructure development, stabilisation of RERA and pick-up in urban housing.
“UltraTech, with its expansion in the last 3 years is very well placed to participate in the growth of the economy,” the company said in a regulatory filing.
Corporate update: The scheme of arrangement amongst Century Textiles and Industries, the company and their shareholders and creditors, is now awaiting the approval of the NCLT and other regulatory authorities as may be required.
“Upon completing this acquisition and with the ongoing capacity expansions, the company’s cement manufacturing capacity will stand augmented to 113.40 mtpa, in India, strengthening its position as the third largest cement player globally (excluding China),” said UltraTech.
It also said UltraTech Nathdwara Cement is in the process of selling the non-core assets acquired in UAE/China, the sale proceeds of which will be used to deleverage the balance sheet.
EBITDA: The figure jumped 29.90 per cent YoY to Rs 2212 crore in Q4FY19, while EBITDA margin increased to 21.10 per cent from 18.90 per cent YoY.