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    UltraTech Cement Q2 Results: Net profit jumps 113% YoY to Rs 1,234 crore

    Synopsis

    UltraTech Cement has shaved off Rs 4,728 crores of net debt in the first-half of this fiscal year.

    UltraTech Cement Q2 Earnings: Net profit jumps over two-fold to Rs 1,235 cr, beats Street estimates

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    UltraTech Cement reported a 113 per cent jump in its net profit at Rs 1,234 crore for the September quarter. The company had reported a net profit of Rs 579 crore a year ago.

    The cement maker’s net sales rose 7.8 per cent to Rs 10,231 crore, from Rs 9,486 crore. It reported robust operating margins at 27 per cent, driven by both revenue growth and tight cost management.

    “The company’s strong quarterly performance is on the back of operational efficiencies and its ability to serve all India markets,” UltraTech said in a release.

    Having reduced net debt substantially for the second quarter in a row, and with prudent working capital management, and overall efficient operations, the company has shaved off Rs 4,728 crores of net debt in the first-half of this fiscal year. The company had reduced its net debt by Rs 2,209 crore during the quarter ended June.

    “As it gradually resumed operations, post lifting of lockdown, UltraTech put together a detailed manual of Standard Operating Procedures giving primacy to safety and laying down robust processes for efficient working conditions in its plants and offices,” it said in a release

    The company said work on its 3.4 mtpa cement capacity addition in Odisha, Bihar and West Bengal has picked up pace and are expected to get commissioned during FY22, in a phased manner.

    The 14.6 mtpa cement plants acquired during the previous financial year have been integrated and now the company is investing in improving operations further, it said in a release.

    The company’s capital and financial resources remain entirely protected and its liquidity position is adequately covered, it said. "UltraTech expects demand for cement to grow on the back of government's thrust on infrastructure and the expanding rural economy,” it said added that the recent policy measures announced by the Reserve Bank of India to support the real estate sector will also aid demand.

    After the earnings announcement, UltraTech traded 0.69 per cent higher at Rs 4,578.90, while benchmark Sensex was down 0.45 per cent at 40,359.98 points.
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