UltraTech Q4 falls 24% to Rs 657 cr, beats estimates

However, revenue grew 4% to Rs 6,597 cr

Ultratech Cement’s performance for the quarter ending March 2015 was above expectations. Consolidated net profit fell 24 per cent to Rs 657 crore in the fourth quarter of 2014-15 from Rs 864 crore in the same period of the previous year due to a rise in expenses and finance costs. However, the net profit was higher than the Bloomberg consensus estimate of Rs 618 crore.

Revenue grew 4.47 percent to Rs 6,597 crore from Rs 6,314 crore in the fourth quarter of 2013-14 and capacity utilisation at domestic plants was 78 per cent.  The Bloomberg consensus estimate had pegged sales at Rs 6,144 crore.

Total expenses during the quarter rose to Rs 5,520.63 crore from Rs 5,287.92 crore in the same period of the previous year owing to higher raw material and logistics costs.

The company said it had deposited Rs 117.55 crore  with the Competition  Appellate Tribunal, which is hearing its plea against an order in a cartelisation case.

In Indian operations, the combined cement and clinker sales of grey cement was 11.8 million metric tonnes against 12.18 million metric tonnes in the same period last year.

During the quarter, the company commissioned a 2 million tonne clinkerisation plant and a 10 Mw waste heat recovery system in Rajasthan. Another 6 Mw waste heat recovery system was commissioned in Karnataka.

Standalone net sales stood at Rs 6,135 crore, up from Rs 5,832 crore in the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs 1,364 crore against Rs 1,329 crore.  Net profit came in at Rs 615 crore compared to Rs 838 crore. The performance was driven by an increase in realisation and margins.

“Ultratech’s results were in line with our expectation. Net sales increased because of an 8.5 per cent increase in cement sales realisation year on year. On the other hand, cement volume saw de-growth of 3 per cent. On the operating front, the company reported EBITDA of Rs 1,232.2 crore, up 7.8 per cent. The company’s EBITDA margin came in at 20.1 per cent and was higher than our expectation of 18.7 per cent. Net profit at Rs 614.6 crore was above our estimate of Rs 569 crore,” said Shrenik Gujrathi, senior research analyst, Angel Broking.

FACT SHEET

• Revenue grew 4.47 percent to Rs 6,597 crore from Rs 6,314 crore in the fourth quarter of 2013-14 and capacity utilisation at domestic plants was 78 per cent
• Total expenses during the quarter rose to Rs 5,520.63 crore from Rs 5,287.92 crore in the same period of the previous year owing to higher raw material and logistics costs