UltraTech Cement logs 48% YoY growth in Q4 net to Rs 2,620 cr, sales up 9%

Ebitda declined 16% YoY to Rs 3,165 cr, while Ebitda margins stood at 19.5% in Q4 versus 25.6% last year, as energy costs swelled in the period under review

The country's largest cement maker, UltraTech, on Friday reported a nearly 48 per cent year-on-year (YoY) increase in consolidated net profit to Rs 2,620 crore for the quarter ended March 31, 2022 (Q4), beating street estimates by a wide margin.

Bloomberg consensus estimates had pegged net profit for the quarter at Rs 1,504 crore. When adjusted for one-time gains including a reversal of provision for income tax to the tune of Rs 983 crore and sale of an asset for Rs 160 crore, net profit for the quarter stood at Rs Rs 1,477 crore, its financial results showed.

Net sales were up 9.5 per cent (YoY) to Rs 15,767 crore in Q4, led by increased demand due to the government's infrastructure push, the company said when announcing its quarterly results. Earnings before interest tax depreciation and amortisation (Ebitda) declined 16 per cent (YoY) to Rs 3,165 crore, while Ebitda margins stood at 19.5 per cent in Q4 versus 25.6 per cent last year, as energy costs swelled in the period under review.

Bloomberg consensus estimates had pegged Q4 net sales and operating profit (or Ebitda) at Rs 15,470 crore and Rs 3,020 crore respectively. The company admitted that the quarter under review had a slow start in terms of sales, but gradually picked up due to the demand momentum in government-led projects. This led to an effective capacity utilisation of 90 per cent during the quarter, the company said.

"Input cost inflation, however, remains a key concern with the rise in fuel and diesel prices," UltraTech said.

The company saw a 48 per cent YoY increase in energy costs and a 7 per cent yearly increase in raw materials costs in Q4. Logistics costs were up 4 per cent over the year-ago period, as diesel prices surged 11 per cent in the quarter under review.

"UltraTech’s capital and financial resources remain fully protected and its liquidity position is adequately covered. Most importantly, it continues to remain committed to all its business associates. Rural and urban demand is also expected to pick up going forward. All of this will augur well for the company," it said.

The company’s board of directors recommended a dividend of Rs 38 per share for the year ended March 31, 2022 (FY22), subject to shareholder approval.

The UltraTech stock closed trade at Rs 6,629 per share on the BSE, up 0.25 per cent over the previous day's close.