UltraTech Cement, an Aditya Birla group company, has reported 10 per cent increase in its March quarter net profit at ₹723 crore against ₹657 crore logged in the same period last year, largely due to higher volume and lower input cost.
The company has announced dividend of ₹9.50 a share aggregating to outgo of ₹314 crore, including a tax of ₹53 crore.
Sales were up five per cent at ₹6,850 crore (₹6,517 crore). Cement sales volume registered growth of 15 per cent to 13.20 million tonnes (11.51 mt), while that of white cement and wall care putty were up nine per cent at 3.85 lakh tonnes (3.52 lt).
Average realisation was down nine per cent at ₹230 per 50-kg bag (₹4,609 a tonne) due to lower selling price.
Total cost of production was down eight per cent at ₹3,689 a tonne. Energy expenses were down 27 per cent at ₹685 a tonne.
Ebitda in the quarter under review in India was down 11 per cent at ₹996 a tonne against ₹1,120 a tonne. Overall expenses were down six per cent ₹5,857 crore (₹5,519 crore), despite higher production.
EPS (diluted) stood at ₹26.32 against ₹23.94. The company’s capacity utilisation was five per cent at 84 per cent.
It added 6.1 million tonne per annum greenfield capacity since April last year taking its total capacity to 66.25 mtpa.
Siddharth Purohit, Senior Equity Research Analyst, Angel Broking, said despite volume growth realisation has dropped higher than expected.
Though cement prices started picking up from March, the real impact of the same would be visible in the coming quarters, he said.
The company has signed agreement to acquire 21.20 mtpa cement making capacity along with mining lease for 40 years of Jaiprakash Associates in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh for ₹15,900 crore. It is in the process of applying for competition commission and High Court approvals.
UltraTech plans to finance the deal through 20-year rupee term debt at base rate with five year moratorium on principal.
The deal is expected to be completed in 12-13 months. As of March quarter, net debt was down at ₹3,626 crore (₹5,195 crore).
On a standalone bases, the net profit was up 11 per cent at ₹681 croe (₹615 crore), while net sales were up five per cent at ₹6,436 crore. The company’s shares were up 0.21 per cent at ₹3,278 on Monday.