UltraTech Cement reports over two-fold jump in Q2 net profit at Rs 1,235 cr

Aditya Birla group firm UltraTech Cement Ltd on Wednesday reported over two-fold jump in consolidated net profit to Rs 1,235.11 crore in the September quarter, mainly on account of operational efficiencies.

The leading cement producer had posted a net profit of Rs 578.55 crore in July-September quarter a year ago, UltraTech Cement said in a regulatory filing.

Its revenue from operations stood at Rs 10,354.21 crore, up 7.68 per cent, during the quarter under review as against Rs 9,615.12 crore in the corresponding period of last fiscal.

"The company's strong quarterly performance is on the back of operational efficiencies and its ability to serve all India markets. UltraTech reported robust operating margins at 27 per cent driven by both revenue growth and tight cost management," the Aditya Birla Group company said in its earnings statement.

According to the company, during the September quarter, it has an effective volume growth of 20 per cent.

UltraTech Cement's total expenses were at Rs 8,688.55 crore in Q2/FY 2020-21, as against Rs 8,872.04 crore, down 2.06 per cent.

For the second quarter in a row, it has reduced net debt substantially.

"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," it said.

Work on the company's 3.4 mtpa (million tons per annum) cement capacity addition in Odisha, Bihar and West Bengal has picked up pace and is expected to get commissioned during FY22, in a phased manner, it said.

While sharing the acquisition update of the 14.6 MTPA plants acquired during the previous financial year, UltraTech said they have been integrated and now the company is investing in improving operations further.

Over the outlook, UltraTech Cement said it expects demand for cement to grow on the back of the government's thrust on infrastructure and the expanding rural economy.

"The recent policy measures announced by the Reserve Bank of India to support the real estate sector will also aid demand. Given its Pan-India presence, UltraTech is well-positioned to benefit from demand recovery across the markets," it said.

Shares of UltraTech Cement Ltd on Wednesday settled at Rs 4,629.60 on BSE, up 1.81 per cent from the previous close.