UltraTech Cement Q3FY22 Results: PAT rises 8% YoY to Rs 1,708 cr

UltraTech Cement third quarter earnings surprised street by reporting positive top and bottom-line year-on-year basis, however, the margins registered a deep cut amid rising input cost on Monday. 

The company’s consolidated profit grew by around 8 per cent to Rs 1708 crore in the October-December quarter of FY22, as against Rs 1,585 crore in the same quarter a year ago. While its consolidated revenue grew by 5 per cent to Rs 12710 crore in Q3FY22 from Rs 12144 crore YoY.   

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It’s consolidated EBIDTA (earnings before interest, taxes, depreciation, and amortization) slipped by 22 per cent YoY to Rs 2419 crore in Q3FY22 as compared to Rs 3094 crore in Q3FY21. While consolidated margins declined by 670 basis points to 18.6 per cent from 25.3 per cent year-on-year. 

The company has, yet been able to maintain a strong growth trajectory, recording a 13.2 per cent growth in its domestic cement sales volumes in the nine months ended December, 2021, despite a marginal degrowth in the reported quarter, UltraTech said in a earnings filing on the BSE. 

It further added, “On the cost front, pet coke and international coal prices have started softening during this quarter, though the prevailing rates are still at elevated levels YoY.” 

During the quarter, the company repaid loans amounting to Rs 3,459 crore, which were funded through internal accruals and have reduced the company’s exposure to floating interest rate. 

The Board at its meeting held today, approved capex of Rs. 965 crores towards modernisation and expansion of capacity at Birla White from the current 6.5 LTPA to 12.53 LTPA (Lakh Tonne Per Annum), in a phased manner, the company also added in a statement. 

In its Q4 outlook, the company mentioned that with the onset of the peak season and rising construction activities, cement demand is expected to revive in Q4FY22, driven by a pick-up in the government-led infrastructure and housing projects.