UltraTech Cement Limited’s net profit for the first quarter almost doubled to ₹1,208 crore compared with the net profit of ₹631 crore registered in the year-earlier period, due to merger synergies and better operational efficiencies.
The rise in profit for one of India’s largest cement makers came on a 15% growth in net sales to ₹10,027 crore during the quarter.
The company’s profit before interest, depreciation and tax stood at ₹2,840 crore compared with the ₹1,763 crore in the year-earlier period. The company achieved an operating EBITDA per tonne of ₹1,466 as EBITDA margin improved to 28% compared with the 19% in the year-earlier period.
Overhauling of plants
“With major overhauling of the plants and completion of quality upgradation, UltraTech’s Nathdwara Cement Limited has been fully integrated with UltraTech systems and processes. The plants have achieved optimal efficiencies,” said the company in a statement.
The cement plants acquired from Jaiprakash Associates in 2017 are operating in line with the existing plants of the company and have achieved PBT (profit before tax) break-even during the quarter. The company’s Bara grinding unit is scheduled for commissioning during Q3 FY20 due to project delays.
The company is in process of merging the cements division of Century Textiles with itself and after completion of the transaction and coupled with the ongoing expansions, UltraTech Cement will achieve an installed capacity of 117.35 MTPA, inclusive of its overseas operations.
The company has repaid over ₹1,000 crore worth of debt during the quarter to take its outstanding debt to ₹18,565 crore.
