The Aditya Birla Group's cement flagship, UltraTech Cement Ltd, reported consolidated net sales of INR121.44bn (US$1.66bn) for the quarter ended 31 December 2020, versus INR102.61bn over the corresponding period of the previous year.
Profit before interest, depreciation and tax was at INR33.62bn compared to INR21.47bn in the corresponding period of the previous year. Profit after tax was INR15.84bn compared to INR7.12bn in the corresponding period of the previous year.
On a standalone basis, net sales stood at INR117.08bn compared to INR98.14bn in the previous year. Profit before interest, depreciation and tax was INR32.06bn compared to INR19.5bn in the previous year and profit after tax was INR15.5bn compared to INR6.43bn in the previous year.
During the quarter, UltraTech's Board approved capex of INR54.77bn towards increasing the company’s capacity by 12.8Mta with a mix of brownfield and greenfield 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 6.7Mta 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 in a phased manner by FY22. Upon completion of the latest round of expansion, the company's capacity will grow to 136.25Mta.
Acquisition update
The 14.6Mta 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 the 3Q20.
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. Net debt reduction during the 3QFY21 was INR26.96bn and INR74.24bn YtD.
Meanwhile, UltraTech Cment has been recognised amongst India's 30 best workplaces in Manufacturing 2021 by the Great PLace to Work® Institute.
