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Ultratech Cement rises after strong Q2 numbers

Capital Market 

Ultratech Cement gained 1.08% to Rs 4,342 after consolidated net profit jumped 63.4% to Rs 583.11 crore on 4% rise in net sales to Rs 9,620.47 crore in Q2 September 2019 over Q2 September 2019.

The result was announced on Monday, 21 October 2019, when the market was shut on account of Assembly Elections in Maharashtra.

EBITDA grew 32% to Rs 2,072 crore in Q2 September 2019 compared with Q2 September 2018. EBITDA margin improved by 5% to 22% in Q2 September 2019 from 17% in Q2 September 2018.

UltraTech completed the acquisition of Century's cement business, with the scheme of demerger becoming effective from 1 October 2019. With this acquisition, UltraTech's cement manufacturing capacity stands augmented to 117.4 mtpa, including its overseas capacity. This makes UltraTech the 3rd largest cement company in the world, outside of China. It is also the only company in the world to have a capacity of over 100 million tons in a single country, outside of China.

In its outlook, the company said that on the basis of positive demand seen in North India in Q2 as many parts of North India were not impacted by heavy rains and floods, there is a good possibility of a normalized demand for cement going forward. The Government's firm commitment to revive the economy and the thrust on infrastructure spending augur well for the growth of cement demand. The heavy rains in the country should also prove beneficial for the kharif crop, which should again help revive rural demand. The company with its presence across all the zones in the country, is the best positioned to take advantage of the revival in cement demand, despite the anomalies that may get created in demand patterns in some parts of the country due to extraneous reasons.

Meanwhile, the S&P BSE Sensex was down 65 points or 0.17% to 39,233.44.

On the BSE, 11,309 shares were traded in the counter so far compared with average daily volumes of 14,855 shares in the past two weeks. The stock hit an intraday high of Rs 4,405.45 and an intraday low of Rs 4,282.70 so far during the day.

The stock hit a 52-week high of Rs 4,903.90 on 27 May 2019. The stock hit a 52-week low of Rs 3,263.70 on 23 October 2018.

UltraTech Cement manufactures a range of products that cater to construction needs from foundation to finish, including Ordinary Portland Cement (OPC), Portland Blast Furnace Slag Cement (PSC), Portland Pozzolana Cement (PPC), white cement including white cement-based products and ready mix concrete.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 22 2019. 09:39 IST