The Company's reported robust operating margin (OPM) at 25.6%, a jump of 310 bps from corresponding previous quarter, driven by sales volume growth and efficiency management. The consolidated sales volume (including overseas) increased 28% to 27.78 million tonnes (mt).

The company consolidated revenue increased 33% to Rs 14,405.61 crore for the fourth quarter ended March 2021, on the back of stronger growth in sales volume. The consolidated sales volume (including overseas) increased 28% to 27.78 million tonnes (mt).

Operating margin (OPM) increased by 310 bps to 25.6%. As a result, the operating profit (OP) inclined 51% to Rs 3,690.40 crore. Other income decreased 70% to Rs 60.33 crore. Interest cost was down 25% to Rs 377.18 crore. Depreciation cost rose 3% to Rs 698.02 crore. Thus, Profit Before Tax (PBT) before EO inclined 83% to Rs 2,675.53 crore.

The Company booked Rs 38.82 crore EO expenses during the quarter towards old advances for purchase of certain land as compared to NIL EO expenses corresponding previous period. As a result, PBT after EO gained 80% to Rs 2,636.71 crore.

With Rs 864.85 crore net tax outflow during the quarter as compared to net tax credit of Rs 1,777.42 crore corresponding previous quarter, the PAT before MI and Share in Profit of Associates declined 45% to Rs 1,771.86 crore. After accounting inflow of 2.27 crore in Share in Profit of Associates and NIL in Minority interest, the Net Profit, as a result, fell by 45% to Rs 1,774.13 crore.

After eliminating one time gain on account of reversal of deferred tax liabilities of Rs. 2,112 crore in consolidated performance of Q4FY20, the company normalised net profit jumped 57% to 1174.13 crore.

For the financial year ended March 2021 (FY 2021), Sales of the company inclined 5% to Rs 44,725.80 crore. OPM increased by 410 bps to 25.9%, thus, OP grew by 25% at Rs 11,567.91 crore. Other income advanced 13% to Rs 734.17 crore. After accounting for finance charges (down 25% to Rs 1,485.65 crore), depreciation (down 1% at Rs 2,700.23 crore), the PBT before EO inclined 57% to Rs 8,116.20 crore.

The Company booked EO expenses of Rs 260.74 crore during the period as compared NIL in corresponding previous period. As a result, PBT after EO rose 52% to Rs 7,855.46 crore.

With Rs 2,538.70 crore net tax outflow during the year as compared to net tax credit of Rs 568.16 crore corresponding previous year, the PAT before MI and Share in Profit of Associates declined 8% to Rs 5,316.76 crore. After accounting gains of Rs 2.18 crore in Share in Profit of Associates and NIL in Minority interest, the Net Profit, as a result, decreased 8% to Rs 5,318.94 crore.

After eliminating one time gain on account of reversal of deferred tax liabilities of Rs. 2,112 crore in consolidated performance of FY20, the company normalised net profit jumped 46% to 5,318.94 crore.

The Board of Directors at their meeting held today have recommended dividend of 370% at the rate of Rs. 37/- per equity share of face value of Rs.10/- per share, aggregating Rs. 1,068.02 crore.

The Company with its prudence and deft financial management has successfully reduced Net Debt/ EBITDA ratio to 0.55x from 1.72x as on 31st March, 2020, which is in line with its endeavour to maintain optimal capital structure. The loan repayments have been made through free cash flows that the Company has generated during the year, despite the challenging circumstances and severe business interruptions during Q1FY21.

Capex

The Company has sanctioned capacity expansion plans of 19.5 million tons through a mix of brown field and green field expansion covering 5 integrated cement plants and 12 grinding units. The additional capacity is being created in the fast-growing markets of the east, central and north regions of the country. Most of the orders for equipment have been placed and civil work has also commenced at these locations. Commercial production from these capacities is expected to go on stream in a phased manner, during FY22 and FY23. Upon completion of the latest round of expansion, the Company's capacity will grow to 136.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China.

Outlook

The Company capital and financial resources remain fully protected and its liquidity position is adequately covered. and semi-urban housing continue to drive growth, pick-up in government led infrastructure aided incremental cement demand. Pent-up urban demand is also expected to improve. The Company is closely monitoring the impact of the second wave of the pandemic on its operations. With its focus on operational efficiencies and cost control, UltraTech is better prepared for any resulting slowdown in the economy.

The scrip closed trading at Rs 6,484.80 (7 May 2021) on the BSE.