UltraTech Cement quarterly results: What should investors do

 UltraTech Cement on Friday reported net profit of Rs 1,582 crore for the quarter ended June 2022 (Q1FY23), 7.45 per cent lower than Rs 1,700 crore in the same quarter of last year. However, the bottomline managed to beat analyst expectations of Rs 1,214 crore.

UltraTech’s revenue was higher in the quarter under review at Rs 15,163.98 crore as against Rs 11,829.84 crore reported in Q1 of FY22. Revenue figure also managed to beat the Street as an ET NOW poll had estimated the figure at Rs 14,238 crore. The top line was higher by 22 per cent on a YoY basis.

UltraTech Cement quarterly results

Sep’22	Jun’22	Mar’22	Dec’21	Sep’21
INCOME
Net Sales Turnover	13481.98	14715.48	15167.54	12470.62	11548.37
Other Income	164.54	166.13	144.79	108.83	141.80
Total Income	13646.52	14881.61	15312.33	12579.45	11690.17
EXPENSES
Stock Adjustments	-294.75	-89.56	151.90	-38.85	-181.41
Raw Material Consumed	1937.16	1945.32	1989.14	1646.84	1441.66
Power and Fuel	3902.57	.00	3594.84	.00	.00
Employee Expenses	644.49	595.36	586.40	599.36	629.47
Administration and Selling Expenses	.00	.00	.00	.00	.00
Research and Development Expenses	.00	.00	.00	.00	.00
Expenses Capitalised	.00	.00	.00	.00	.00
Other Expenses	5576.54	9334.99	5902.33	8041.80	7058.65
Provisions Made	.00	.00	.00	.00	.00
TOTAL EXPENSES	11766.01	11786.11	12224.61	10249.15	8948.37
Operating Profit	1715.97	2929.37	2942.93	2221.47	2600.00
EBITDA	1880.51	3095.50	3087.72	2330.30	2741.80
Depreciation	642.74	628.16	637.39	608.92	612.73
EBIT	1237.77	2467.34	2450.33	1721.38	2129.07
Interest	186.74	199.69	174.71	165.02	182.75
EBT	1051.03	2267.65	2275.62	1556.36	1946.32
Taxes	332.66	713.63	-178.27	-75.14	646.23
Profit and Loss for the Year	718.37	1554.02	2453.89	1631.50	1300.09
Extraordinary Items	.00	.00	.00	.00	.00
Prior Year Adjustment	.00	.00	.00	.00	.00
Other Adjustment	.00	.00	.00	.00	.00
Reported PAT	718.37	1554.02	2453.89	1631.50	1300.09
KEY ITEMS
Reserves Written Back	.00	.00	.00	.00	.00
Equity Capital	288.67	288.67	288.67	288.66	288.66
Reserves and Surplus	.00	.00	.00	.00	.00
Equity Dividend Rate	.00	.00	.00	.00	.00
Agg. Non-Promoter Share(Lakhs)	.00	.00	.00	.00	.00
Agg. Non-Promoter Holding(%)	.00	.00	.00	.00	.00
Government Share	.00	.00	.00	.00	.00
Capital Adequacy Ratio	.00	.00	.00	.00	.00
EPS(Rs.)	.00	.00	.00	.00	.00

Rs (in Crores)

The Aditya Birla Group firm said its existing expansion program is on track and estimated to be completed by the end of FY23.

“Work on further capex announced during the quarter has already commenced and commercial production from these new capacities is expected to go on stream in a phased manner by FY25. Upon completion of the latest round of expansion, the Company’s capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China,” it said in a release.

UltraTech said while headwinds arising out of rising cost pressure could put some pressure on the profitability of cement companies, the strong momentum in housing and given the government’s thrust on infrastructure and industrial development, the cement industry in India is set to see an upswing in demand in FY23.

The cement major achieved capacity utilisation of 83 per cent as against 73 per cent during Q1. Domestic sales volume grew 19 per cent on a year-on-year basis.

“After a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labour availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity,” the company said.

The June quarter saw a YoY volume growth of 17 per cent and revenue growth of 34 per cent YoY. Its raw material cost increased 13 per cent on a YoY basis.