The outlook on the local-currency IDR is 'stable', the credit rating agency said.

Fitch Ratings said that the stable outlook on UltraTech's foreign-currency IDR follows the revision of the outlook on India's long-term foreign- and local-currency IDRs to 'stable' from 'negative'.

The 'stable' outlook underscores UltraTech's stronger financial structure following healthy profitability amid the Covid-19 pandemic and significant debt reduction since the financial year ended March 2020 (FY20). This should support comfortable leverage headroom despite higher expansion capex and Fitch's expectation of a moderation in margins after FY22.

UltraTech Cement is the third-largest cement producer outside China, and the largest in India by installed capacity.

On a consolidated basis, the cement major's normalised net profit declined 18.52% to Rs 1,478 on 9.31% increase in net sales to Rs 15,557 crore in Q4 March 2022 over Q4 March 2021.

The scrip fell 2.78% to currently trade at Rs 5357.25 on the BSE.