Ultratech consol PAT dn 7% YoY on EBITDA fall, but volume rises 16%

22 Jul 2022

UltraTech Cement Ltd's profitability was hit for a fourth consecutive quarter in Apr-Jun due to a sustained rise in input costs which negated the volume gains from an improved cement demand.

The company reported a 7.1% on-the-year decline in its consolidated net profit to 15.8 bln rupees in Apr-Jun primarily due to a 8.8% decline in the operating profit to 32 bln rupees.

UltraTech’s consolidated revenue from operations rose significantly by 28% on the year to 151.6 bln rupees on the back of a 16% rise in consolidated sales volume to 25 mln tn.

The company said that although the cement demand was impacted by inflationary trend and lower labour availability in May, it picked in June on pre-monsoon construction activity.

The operating profit was hit by a 65% jump in energy costs, comprising of petcoke and coal costs, to 40.1 bln rupees in the June quarter, followed by a 29% rise in raw material costs to 20 bln rupees.

The consolidated operating margin contracted sharply to 21.1% from 29.7% a year ago. In Jan-Mar too, the operating margin had gone down to 19.5% from 25.6%.

UltraTech’s consolidated operating profit per tn slid to 1,230 rupees in Apr-Jun from 1,537 rupees.

The company said its plants ran to 83% capacity utilization in Apr-Jun as compared to 73% in the year ago period.