The country's largest cement maker - UltraTech Cement - on Monday reported a net profit of Rs 1,708 crore in the quarter ended December 2021, marking an increase of 8 per cent from the same period last year. Its revenue from operations advanced 6 per cent annually to Rs 12,985 crore. Its Profit before interest, depreciation and tax (PBIDT), however, declined 26 per cent to Rs 2,490 crore.
“After gaining pace in October 2021, demand slowed down substantially in November 2021 as a result of the construction ban in the NCR, extended monsoons in the South and a few states in the North, sand issues in the Eastern region as well as in parts of Uttar Pradesh, and the Diwali holiday season,” UltraTech Cement said in a press release.
UltraTech Cement’s recorded 13.2 per cent growth in its domestic cement sales volumes in the nine months ended December 2021, despite a marginal de-growth in the December quarter. On the cost front, pet coke and international coal prices have started softening during this quarter, though the prevailing rates are still at elevated levels annually, UltraTech added.
During the quarter the company repaid loans amounting to Rs 3,459 crores. The repayments were funded through internal accruals. “Trade sales were impacted more than non-trade sales, as overall cement demand remained subdued. With the onset of the peak season and rising construction activities, cement demand is expected to revive in Q4FY22, driven by a pick-up in the government-led infrastructure and housing projects. Rural and urban demand is also expected to pick up going forward. All of this augur well for the Company,” UltraTech Cement said on the outlook of the company.
As of 2:37 pm, UltraTech Cement shares traded 2.3 per cent higher at Rs 7,831, outperforming Sensex which was up 0.2 per cent.