|Rs. in crores|
|Quarter ended||Quarter ended|
|Particulars||30th Sept, 2017||30th Sept, 2016||30th Sept, 2017||30th Sept, 2016|
(Net of taxes)
UltraTech Cement Limited, an Aditya Birla Group Company, today announced its unaudited financial results for the quarter ended 30th September, 2017.
Net Sales stood at Rs. 6,840 crores as compared to Rs. 5,708 crores in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax at Rs. 1,550 crores was higher by 13% vis-à-vis Rs. 1,378 crores in the corresponding period of the previous year. Increased depreciation and higher interest cost relating to the acquired cement plants resulted in Profit after Tax at Rs. 423 crores as compared to Rs. 614 crores in Q2FY17. This quarter continued to witness increasing cost trends, attributable to increase in fuel prices.
On a standalone basis, Net Sales stood at Rs. 6,478 crores as compared to Rs. 5,397 crores in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax was Rs. 1,519 crores (Rs. 1,327 crores) and Profit after Tax was Rs. 431 crores (Rs. 601crores).
Upon completing the acquisition of the cement plants having a capacity of 21.2 mtpa, the Company’s cement capacity stands augmented to 93 mtpa.
This acquisition will enhance the Company’s foot-print into high growth markets of India viz., Central India, Himachal Pradesh, Eastern UP and coastal Andhra Pradesh, where the Company has been focusing to increase its presence.
This being the first quarter of operations post-acquisition, the Company has injected the much needed working capital. The most critical aspect has been to improve and stabilise the quality of cement being manufactured at these plants and bringing it up to the Company’s standard. Towards this, initial one-time expenses were undertaken for improving efficiencies and plant maintenance. In parallel, new dealers have been appointed to penetrate the markets. The Company also completed a successful transition of the acquired cement plants to the ‘UltraTech’ brand.
The acquisition was completed with the onset of monsoons and acute shortage of sand in most of the markets, which impacted performance. Regardless, the operations of the acquired assets have been EBITDA accretive. The Company is now focussed on increasing its presence in the newly acquired markets and ramping up sales.
The Board at its meeting held today, approved an investment of Rs.194 crores for putting up a 4.0 Lmt capacity wall care putty plant to cater to the rising demand for putty. The plant is expected to be commissioned during Q2FY20.
Government spending on infrastructure, rural and affordable housing will be the key demand drivers. UltraTech is well positioned across the country to cater to the demand.