UltraTech Cement Q2 profit jumps to Rs 579 crore, board approves capex of Rs 940 crore
Mumbai (Maharashtra) [India], Oct 22 : Aditya Birla-led UltraTech Cement on Monday reported a consolidated profit after tax of Rs 579 crore during the July to September quarter of current financial year, up from Rs 356 crore in the same period of previous fiscal.
While net sales totalled Rs 9,491 crore compared to Rs 9,088 crore in Q2 FY19, the profit before interest, depreciation and tax was Rs 2,072 crore vis-a-vis Rs 1,564 crore. During the quarter, UltraTech completed the acquisition of Century Cement by allotting 13.96 crore equity shares of Rs 10 each to shareholders on October 14.
This makes UltraTech the third largest cement company in the world outside of China. It is also the only company to have a capacity of over 100 million tonnes in a single company.
Its manufacturing capacity stands at 117.4 million tonnes per annum. In June 2017, the company had acquired 21.2 million tonnes capacity from Jaiprakash Associates. “On the basis of positive demand seen in north India during Q2 — as many parts were not impacted by heavy rains and floods, — there is a good possibility of normalised demand for cement going forward,” UltraTech Cement said in a statement.
The government’s firm commitment to revive the economy and thrust on infrastructure spending augur well for the growth of cement demand. The heavy rains should also prove beneficial for the kharif crop which should again help revive rural demand, it added.
The company board has approved a capital expenditure of Rs 940 crore for making premium products with an increase in its grinding capacities in Bihar and West Bengal by 0.6 million tonnes per annum each and a new grinding unit of 2.2 million tonnes in Odisha. All the plants will be commissioned by January to March 2021.
UltraTech Cement is in the process of selling its non-core assets acquired in China and the United Arab Emirates. The sale proceeds will be used to deleverage the balance sheet.
