UltraTech net profit jumps 38% in Jan-March, beats estimates

UltraTech Cement today reported a standalone net profit of Rs 2,454 crore for the January-March quarter, up 38% from the year-ago period.

The company's standalone revenue during the quarter rose 8.6% on year to Rs 15,167 crore.

The bottom line was nearly double of the market estimate of around Rs 1,250-1,300 crore. The top line, however, missed analysts’ estimate of above Rs 16,000 crore.

The company's sales volume during the quarter was flat at 29.7 million tonnes. For the whole of FY22, sales volume grew 9% to 94.99 million tonnes.

The capacity utilization of plants was at 90% during the quarter.

For the fiscal year 2021-22, the company's revenue grew 16.9% to Rs 51,708 crore, while its net profit (adjusted for two exceptional items) grew 2.5% to Rs 5,667 crore.

Other key highlights

1) The board recommended a dividend of Rs 38 per equity share for the year ended March.

2) UltraTech's current capacity expansion programme is on track to be completed by the end of FY23.

3) Blended pet coke/coal cost for the quarter was $164/tonne during the last quarter of the fiscal year, a rise of 69%.

4) Operating profit grew 27% on year to Rs 3,165 crore in January-March.

5) Operating profit for FY22 fell 2.3% to Rs 12,022 crore.

6) Operating cash flow was at Rs 8,979 crore in FY22.

7) Operating EBITDA per tonne was at Rs 1,266 in FY22, down 7.8%.

8) Operating cost per tonne grew 17% in FY22.

9) The company added 121 MW of solar and 42 MW of waste-heat recovery-based power capacity in FY22.

10) Total capacity addition in FY22 was at 3.2 MTPA.

Input cost inflation

The company saw an increase in energy cost by 48% with prices of pet coke and coal doubling during the period.

"After a slow start to the quarter, demand improved month on month driven by improvement in the government's project execution. Input cost inflation remains a concern with the rise in diesel prices," the company said.