Ultratech Cement reported 114% rise in consolidated net profit to Rs 1,703 crore in Q1 FY22 from Rs 794 crore in Q1 FY21.
Revenues (net of taxes) rose by 54% YoY to Rs 11,698 crore during the quarter. EBITDA increased by 49% to Rs 3,512 crore in Q1 FY22 from Rs 2,357 crore in Q1 FY21. EBITDA margin was at 30% as on 30 June 2021 as against 31% as on 30 June 2020.
Profit before tax in Q1 FY22 stood at Rs 2,526 crore, up by 93% from Rs 1,311 crore in Q1 FY21.
Production costs during the quarter increased 11% YoY, mainly on account of higher fuel prices. The company continues to maintain a tight control on costs and cash flow with focus on operational efficiencies. This has enabled UltraTech to achieve an effective capacity utilization of 73% during the quarter as against 46% in Q1 FY21.
The cement maker said that after a rapid recovery from the COVID-19 led disruption of the economy during FY21, the economy was hit by an unexpectedly virulent second wave, which also marginally impacted cement demand. UltraTech is monitoring the impact of the second wave of the pandemic on its operations.
The company's expansion program is on track and estimated to be completed by at the end of FY23. On completion, the capacity will be augmented to 136.25 mt. COVID did cause some delays due to labour shortages and lockdowns. However, the company expects to commission all the projects as per the original schedule.
With projections of a likely third wave, the company is closely monitoring the situation. It remains cautiously optimistic, given its inherent financial and operational resources and the government's continuing thrust on infrastructure activities and housing construction.
UltraTech is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India. The company's business operations span UAE, Bahrain, Sri Lanka and India.
The scrip shed 0.04% to currently trade at Rs 7420.60 on the BSE.
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