UltraTech Cement records net sales of INR117,430m 2QFY22

UltraTech Cement Ltd, an Aditya Birla group company, announced its financial results for the quarter ended 30 September 2021. Consolidated net sales was INR117,430m (US$1558m) compared to INR102,640m over the corresponding period of the previous year. 

Profit before interest, depreciation and tax was INR28,550m compared to INR28,330m a year ago. Profit before tax was INR19,470m and profit after tax was INR13,140m compared to INR17,330m and INR13,090m, respectively. 

Coal and petcoke prices nearly doubled in 2QFY22, resulting in energy cost rising 17 per cent YoY. During the quarter the cement producer commissioned a 12MW waste heat recovery system and 21MW of solar power. With this expansion the company’s green energy share has increased to 15 per cent of its total energy consumption.

UltraTech commissioned cement capacity of 1.2Mta in October 2021 by upgrading its Patliputra Cement Works, Bihar by 0.6Mta and by increasing capacity at the Dankuni Cement Works, West Bengal, by 0.6Mta. 

Outlook
While continuous increases in input costs like coal, petcoke and diesel present a challenge for the industry the recovery in rural housing, UltraTech Cement said higher MSP (minimum support price) for kharif crop and pick-up in infrastructure-led construction activity are likely to drive cement demand off-take.