UltraTech Cement Limited announces financial results for the quarter ended 31st December, 2020

Domestic Sales Volume Up 14 per cent

The Aditya Birla Group’s, cement flagship, UltraTech Cement Limited, today announced its financial results for the quarter ended 31st December, 2020.

Recovery from the Covid-19 led disruption of the economy has been rapid. This has been fuelled by quicker demand stabilisation, supply side restoration and greater cost efficiencies.

While rural and semi-urban housing continue to drive growth, pick-up in government led infrastructure aided incremental cement demand. Pent-up urban demand is expected to improve with the gradual return of the migrant work force.

While fuel prices have increased in recent months, operational efficiencies and tight control over costs, are reflected in the Company’s 26 per cent operating margin. Focus on reducing debt continue. Net debt reduction during Q3FY21 was Rs.2,696 crores and year-to-date it was Rs.7,424 crores.

Financials

Consolidated Net Sales was Rs.12,144 crores vis-à-vis Rs.10,261 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was at Rs.3,362 crores vis-à-vis Rs.2,147 crores in the corresponding period of the previous year. Profit after tax was Rs.1,584 crores compared to Rs.712 crores in the corresponding period of the previous year.

On a standalone basis, Net Sales stood at Rs.11,708 crores (Rs.9,814 crores). Profit before Interest, Depreciation and Tax was Rs.3,206 crores (Rs.1,950 crores) and Profit After Tax was Rs.1,550 crores (Rs.643 crores).

Corporate Developments

During the quarter, UltraTech’s Board approved capex of Rs. 5,477 crores towards increasing the Company’s capacity by 12.8 mtpa with a mix of brown field and green field expansion. The additional capacity is being created in the fast-growing markets of the east, central and north regions of the country. This expansion is in addition to the Company’s 6.7 mtpa capacity addition that is currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has picked up pace and is expected to get commissioned by FY22, in a phased manner.

Upon completion of the latest round of expansion, the Company’s capacity will grow to 136.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China.

Acquisition update

The 14.6 mtpa cement plants acquired during the previous financial year have been making good progress on integration with production ramped up to nearly 84 per cent toward the exit of Q3. The timely acquisition has enabled the Company to meet the growing demand in the central and east markets.

Going Forward

While UltraTech continues to closely monitor the impact of COVID-19 on its operations, its capital and financial resources remain entirely protected and its liquidity position is adequately covered.

With strong rural growth, revival in manufacturing sentiment, buoyancy in GST and tax collections, UltraTech expects demand to grow on the back of the Government’s push on infrastructure projects.

Given its Pan-India presence, UltraTech is well positioned to support the rising demand for cement in the country.

As always, UltraTech remains committed to all its business associates and stakeholders.

About UltraTech Cement Limited
UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. A $ 5.8 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India. With a consolidated grey cement capacity of 116.75 MTPA, it is the third largest cement producer in the world, excluding China, and the only one globally (outside of China) to have 100+ MTPA of cement manufacturing capacity in a single country. The Company’s business operations span UAE, Bahrain, Sri Lanka and India.

UltraTech is a founding member of Global Cement and Concrete Association (GCCA). It is a signatory to the GCCA Climate Ambition 2050, a sectoral aspiration to deliver carbon neutral concrete by 2050. UltraTech has adopted new age tools like Science Based Target Initiative (SBTi), Internal Carbon Price and Energy Productivity (#EP100) as part of its efforts to accelerate adoption of low carbon technologies and processes across its value chain and thus reduce carbon footprint over the life cycle. As part of its CSR, UltraTech reaches out to more than 1.6 million beneficiaries across India covering areas of education, healthcare, sustainable livelihoods, community infrastructure and social causes.