Ultratech PAT halves to ~1,775 cr

Ultratech Cement, flagship of the Aditya Birla Group, reported a higher-than-expected consolidated net profit of ~1,775 crore in the March quarter, down 45 per cent from the corresponding period last year, even as net sales jumped.

Net sales of the company stood at ~14,405 crore in the final quarter of FY21, up 33 per cent from the same period last year on strong demand for the commodity.

According to Bloomberg estimates, the company’s top line was expected to be ~13,460 crore, while the bottom line around ~1,644 crore in the period under review.

Tax expenses worth ~865 crore ate into the company earnings in the period under review, in turn dragging the bottom line.

Ultratech, during the quarter, reduced net debt/earnings before interest, taxes, depreciation and ammortisation (Ebitda) ratio to 0.55x from 1.72x as on March, 31, 2020. This is in line with its endeavor to maintain optimal capital structure. Loan repayments have been made through free cash flows that the company generated during the year, despite the challenging circumstances and severe business interruptions during Q1 FY21, said a company release. Meanwhile, it raised $400 million, corresponding to approximately ~2,900 crore, by way of issuance of unconditional, unsubordinated and unsecured dollardenominated notes. The bonds are listed on the Singapore Exchange Securities Trading Limited.

The board had earlier sanctioned capacity expansion of 19.5 million tonne through a mix of brownfield and greenfield expansion, covering five integrated cement plants and 12 grinding units.

Net sales of the company stood at ~14,405 crore in the final quarter of FY21, up 33% from the same period last year