UltraTech Cement announces unaudited financial results for the quarter ended 31 December 2017

UltraTech reports 37 per cent jump in volumes; EBITDA up 18 per cent

UltraTech Cement Limited, an Aditya Birla Group company, today announced its unaudited financial results for the quarter ended 31 December 2017.

The quarter witnessed increase in variable costs attributable to rise in pet coke and coal prices. The ban on pet coke usage in some states also adversely impacted performance. Regardless, the company registered a 18 per cent PBIDT growth during the quarter.

The acquisition
After successfully launching the ‘UltraTech Brand’ in all the markets being served from the acquired plants, the operations are in line with the company’s ramp-up strategy. Improved capacity utilisation currently touching 60 per cent from a low of 18 per cent at the time of acquisition is encouraging. Substantial improvements have been carried out at these plants in terms of their operating parameters. Appointment of new dealers and retailers is an on-going program to increase the reach of UltraTech in the new markets. The acquisition is generating incremental earnings as planned and which are improving month on month.

Financials
Net sales stood at Rs.7,897 crore as compared to Rs.5,927 crore in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax was Rs.1,494 crore vis-à-vis Rs.1,280 crore in the corresponding period of the previous year. Profit after Tax was Rs.456 crore as against Rs.595 crore in Q3FY17.

On a standalone basis net sales stood at Rs.7,471 crore as compared to Rs.5,540 crore in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax was Rs.1,425 crore (Rs.1,210 crore) and Profit after Tax was Rs.421 crore (Rs.563 crore).

Outlook
The expected higher budget allocation for infrastructure and rural development will be the key demand drivers.