UltraTech Cement's consolidated net sales reach INR75,630m in 1QFY21

UltraTech Cement Ltd’s (Aditya Birla Group) consolidated net sales reached INR75,630m (US$1.01bn) in the 1QFY21 compared to INR112,290m in the 1QFY20. Profit before interest, depreciation and tax was at INR23,530m, down from INR30,840m in the corresponding period of the previous year. Normalised profit after tax was INR9,060m compared to INR12,810m in the corresponding period of the previous year.

On a standalone basis, net sales stood at INR72,900m compared to INR10,8510m in 1QFY20. Profit before Interest, depreciation and tax was INR22,510m, down from INR29,480m and normalised profit after tax was INR9140m down from INR12,670m.

The ‘overheads control programme’ initiated by the management cut fixed costs by 21 per cent YoY. Prudent working capital management and control on cash flows are reflected in a reduction of net debt by INR22,090m during the 1QFY21.

In the available 68 operating days during this quarter, the company kept a tight control on costs and cash flow, and achieved an effective capacity utilisation of 60 per cent across its network of 54 plants around the country.

“General disruption as a result of the lockdown (late-March to end-April 2020) impacted business performance, but with the Government of India and the State Governments taking measured steps towards opening up the economy, some encouraging trends were seen during the latter part of May, 2020,” says UltraTech. This was driven largely by better than expected pick-up in cement consumption in the rural markets.