UltraTech Profit Beats Estimates For Seventh Straight Quarter; Volumes Disappoint
UltraTech’s standalone net profit jumps 15 percent in April-June quarter.
UltraTech Cement Ltd.’s profit beat estimates for the seventh straight quarter despite a bump in energy and logistics costs.
India’s largest cement maker’s net profit rose nearly 15 percent to Rs 890.6 crore in the quarter ended June over the year-ago period, according to the company’s exchange filing. Analysts tracked by Bloomberg had pegged the number at Rs 813.4 crore.
The profit beat forecasts largely due to lower depreciation and interest costs. Higher other income also aided the growth, rising 10 percent to Rs 166 crore.
Volume growth was, however, flat at 13.2 million tonnes, below the Bloomberg consensus estimate of 13.9 MT. As a result, its revenue missed estimates marginally. It rose 6.4 percent year-on-year to Rs 5,020 crore, mainly driven by an increase in realisation.
Other Earnings Highlights
- Net profit is at multi-quarter high.
- Net sales of the pan-India cement maker grew 6 percent to Rs 7,520.3 crore, a four-quarter high.
- Earnings before interest, tax, depreciation and amortisation registered a 10 percent growth to Rs 1,560 crore.
- EBITDA margins expanded 70 basis points to 20.7 percent.
- Finance costs and depreciation fell 16 percent and 58 percent year on year, respectively.
- Power costs have been rising past two quarters.
Acquisition Update
UltraTech has completed the acquisition of the cement plants of Jaiprakash Associates and Jaypee Cement Corporation in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh with a capacity of 21.2 million tonnes. The Aditya Birla Group company’s total capacity now stands at 93 million tonnes per annum.
