UltraTech Cement Q3 net profit more than doubles to Rs 1,584 crore

UltraTech Cement’s consolidated internet gain much more than doubled to Rs 1,584 crore in the December quarter compared to the exact same period of time previous yr on the back again of increased gross sales.

In the December quarter previous yr, the Aditya Birla Group organization had reported a base-line of Rs 711 crore.

Web gross sales of the organization stood at Rs 12,254 crore in the period of time less than critique, up seventeen per cent from the corresponding period of time previous yr fuelled by more quickly demand from customers stabilisation, supply-facet restoration and greater expense efficiencies.

“When rural and semi-urban housing carry on to push expansion, decide on-up in federal government led infrastructure aided incremental cement demand from customers. Pent-up urban demand from customers is anticipated to strengthen with the gradual return of the migrant get the job done drive,” knowledgeable the organization in its launch.

Meanwhile, the company’s gain prior to curiosity, depreciation and tax (PBIDT) was at Rs 3,362 crore in the quarter absent by as from Rs two,147 crore in the corresponding period of time of the former yr.

“When fuel selling prices have increased in current months, operational efficiencies and limited handle in excess of charges, are reflected in the company’s 26 per cent operating margin.

Target on lessening personal debt continues with internet personal debt reduction through Q3FY21 at Rs two,696 crore and yr-to-date at Rs 7,424 crore,” knowledgeable UltraTech.

All through the quarter, UltraTech’s Board accredited capital expenditure of Rs 5,477 crore in direction of raising the company’s ability by 12.eight million tonnes with a mix of brown field and inexperienced field expansion. The additional ability is staying established in the quickly-rising marketplaces of the east, central and north areas of the region.

The fourteen.6 million tonne cement crops acquired through the former fiscal yr have been creating very good progress on integration with generation ramped up to just about 84 per cent toward the exit of Q3.

The well timed acquisition has enabled the Enterprise to meet the rising demand from customers in the central and east marketplaces.

Heading ahead, although UltraTech continues to closely keep an eye on the influence of COVID-19 on its operations, its capital and fiscal resources stay entirely protected and its liquidity place is adequately included.

With powerful rural expansion, revival in manufacturing sentiment, buoyancy in GST and tax collections, UltraTech expects demand from customers to improve on the back again of the Government’s push on infrastructure initiatives.

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