UltraTech posts net of Rs 727 cr, plans to invest Rs 11,000 cr in 3 years
For the next three years, UltraTech has planned capital expenditure of around Rs 11,000 crore with an objective of enhancing its capacity by 9.2 million tonnes.
By ET Bureau | Updated:
MUMBAI: Improved realisations and a reversal in tax provision helped India's largest cement-maker UltraTech Cement to clock 128% sequential growth in standalone net profit for January-March at Rs 727 crore.
Revenue for the quarter also rose 21% to Rs 4,490 crore. The 52-million tonnes cement maker's net realisation rose over 12% to Rs 3,951 per tonne during the quarter. This was well supported by over 6% growth in sales volume at 10.4 million tonnes.
Operating margin rose over 400 basis points to nearly 24%. "UltraTech's operating margin expansion is mainly on account of better cement realisation. Cement prices were strong during the quarter due to seasonal pick up in demand," said Nitesh Jain, an analyst at Enam Securities.
During the quarter, the Aditya Birla Group company reversed a tax provision worth around Rs 150 crore, which bolstered the company's profits further. Earnings for the quarter and year ended March have been adjusted to include Samruddhi Cement's performance and therefore are not comparable with the corresponding period of the previous year.
Despite the positive performance during the quarter, UltraTech provided cautious outlook for the year ahead. For the next three years, UltraTech has planned capital expenditure of around Rs 11,000 crore with an objective of enhancing its capacity by 9.2 million tonnes.
Revenue for the quarter also rose 21% to Rs 4,490 crore. The 52-million tonnes cement maker's net realisation rose over 12% to Rs 3,951 per tonne during the quarter. This was well supported by over 6% growth in sales volume at 10.4 million tonnes.
Operating margin rose over 400 basis points to nearly 24%. "UltraTech's operating margin expansion is mainly on account of better cement realisation. Cement prices were strong during the quarter due to seasonal pick up in demand," said Nitesh Jain, an analyst at Enam Securities.
During the quarter, the Aditya Birla Group company reversed a tax provision worth around Rs 150 crore, which bolstered the company's profits further. Earnings for the quarter and year ended March have been adjusted to include Samruddhi Cement's performance and therefore are not comparable with the corresponding period of the previous year.
Despite the positive performance during the quarter, UltraTech provided cautious outlook for the year ahead. For the next three years, UltraTech has planned capital expenditure of around Rs 11,000 crore with an objective of enhancing its capacity by 9.2 million tonnes.
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