UltraTech Cement reported a consolidated net profit of Rs 1,014.19 crore for the three months of January-March 2019. The company had posted a net profit of Rs 446.13 crore in the corresponding quarter last year. The company s net sales stood at Rs 10,739 crore during the quarter ended March 31, while the net sales in the corresponding quarter of the previous fiscal year stood at Rs 9,401.39 crore.
The company s results for the quarter and the financial year ended March 2019 are not comparable with previous financial year owing to the merger of Binani Cement into the company, which has now been named as UltraTech Nathdwara Cement. Meanwhile, domestic sales jumped 16% on a year-on-year basis.
The clinker capacity and cement grinding facility at Manawar in Dhar district of Madhya Pradesh have stabilised, with the clinker capacity operating at 100% utilisation. Variable costs were up 3% y-o-y on account of higher fuel prices and the impact of rupee depreciation, but down 7% compared to the sequential quarter. Atul Daga, director and chief financial officer of UltraTech Cement, said while most other costs were benign, logistics expenses remained a concern given the volatility in the oil prices.
The consolidated Ebitda (earnings before interest, tax, depreciation and amortisation) during the quarter under review stood at Rs 2,459 crore. As far as Binani’s acquisition is concerned, the company in a statement said it was in the process of selling the acquired non-core assets in United Arab Emirates and China, and the sale proceeds would be used to deleverage the balance sheet.
The Binani acquisition, which has provided UltraTech access to large reserves of limestone, enabled the company to consolidate its presence in the northern and western markets in India, the company statement said. Further, the company undertook a major overhauling of the plants during the quarter to improve production efficiencies. The plants have been ramping up capacity utilisation, achieving 72% in the month of March, 2019, the statement said.
UltraTech Cement’s share price closed up 4.59% at Rs 4,396 on BSE, on Wednesday. The results were announced during market hours.