Ultra Tech Cement Limited Ultra Tech, the most important cement manufacturer in India, on October 19 stated a forty-two percent decline in its consolidated net profit at Rs 759 crore for the zone ended September 30, 2022 from Rs 1,310 crore in the year-in the past duration.
On a sequential foundation, Ultra Tech's earnings become down 52 percentage from Rs 1,582 crore within the April-June period.
The consolidated revenue for the area at Rs 13,893 crore became 16 percentage higher on yr from Rs 12,017 crore. Compared to the previous area, the revenue is eight percent lower from Rs 15,164 crore.
The business enterprise beat the street’s estimates for sales, but the decline in profit became higher than what brokerages polled through Money control anticipated.
Demand state of affairs:
The second region is traditionally a susceptible one for the cement region, with decrease call for as production activity slows down because of the monsoon.
Demand was low all through July and August, however showed some symptoms of revival in September, the business enterprise said in its profits launch.
The select-up in retail demand turned into at again of pent-up demand accumulation at some stage in the monsoons, pre-Diwali production and repair work gaining momentum, and pre-election tailwinds. Institutional call for was led by way of improved production pastime after the receding monsoons.
Operational performance
The key reason for the decline in income changed into decrease realization and better energy prices that weighed on the operational performance.
Energy prices, which represent 37 percentage of operating expenses for the employer, accelerated 58 percent in 12 months to Rs 1,731 consistent with tonne. The increase turned into because of a rise in combined gas prices of $200 in step with tonne as compared to $ a hundred and twenty consistent with tonne in the course of the same period closing 12 months.
The consumption of puppy coke was forty percent at some point of the region, in comparison to 19 percent a yr ago.
Raw material fees rose 18 percentage, YoY to Rs 610 a tonne and constituted 13 percent of the entire working costs.
Due to the softening of diesel fees by around a percentage over the preceding yr and advanced performance, the growth in logistics costs (27 percentage of working expenses) was marginal to 2 percentage YoY.
Other operational prices also moved up through 7 percentage on year and sixteen percent on sector because of the inflationary increase in plant renovation value, lower operating leverage due to lower extent (as compared to the previous sector) and boom in employee expenses.
Consolidated quantity boom stood at 23.1 million tonne for the area, up 7 percent YoY. Domestic income volume grew through 10 percent on 12 months with a capacity utilization of 76 percentage.
The EBITDA/tonne for Indian operations stood at Rs 812, down 38.6 percent YoY, at the same time as consolidated EBITDA/Tonne came in at Rs 819, down 34.6 percent YoY.
Capex
During the quarter, Ultra Tech commissioned 1. Three million lots consistent with annum (mt pa) brownfield ability at Dally, Uttar Pradesh, taking the whole capability in India to one hundred fifteen. Eighty-five mt pa and 121.25 mt pa globally.
In the second 1/2 of this yr and start of the next financial 12 months, the company will commission another 15. Four mt pa of greenfield / brownfield enlargement, taking the total capacity to 131.25 mt pa in India.
Work on the second one segment of increase of 22.6 mt pa introduced in the course of the first quarter has already, and the brand-new potential will come to flow in a phased manner with the aid of FY25.
Debt:
Net Debt accelerated to Rs 8,357 crore from Rs five,561 crore within the preceding area ended June 2022 mainly on account of growth in running capital and boom capex.
The inventory closed a percentage better at Rs 6,410 on the National Stock Exchange. The stock has misplaced 12 percentage at some stage in the year and is down 2.6 percent over the month.
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