Quarter ended June 2021 compared with Quarter ended June 2020

Net sales (including other operating income) of UltraTech Cement has increased 54.21% to Rs 11829.84 crore.  

Operating profit margin has jumped from 27.08% to 27.96%, leading to 59.19% rise in operating profit to Rs 3,307.49 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 11.32% to 12.74%.   Purchase of finished goods cost rose from 1.75% to 2.00%.   Employee cost decreased from 7.57% to 4.80%.   Other expenses rose from 51.44% to 53.29%.   Power and Oil fuel cost rose from 18.56% to 19.94%.   Freight charges rose from 21.61% to 21.75%.   

Other income fell 26.53% to Rs 204.87 crore.  Provision for interest fell 17.30% to Rs 326.11 crore.  

Provision for depreciation rose 1.32% to Rs 659.8 crore.  

Profit before tax grew 92.71% to Rs 2,526.45 crore.  Provision for tax was expense of Rs 826.91 crore, compared to Rs 360.3 crore.  Effective tax rate was 32.72% compared to 31.24%.

Minority interest decreased 132.14% to Rs -2.60 crore.  Net profit attributable to owners of the company increased 114.38% to Rs 1,702.63 crore.  

Capital Expenditure:

The company's expansion program is on track and estimated to be completed by at the end of FY2023. On completion, the capacity will be augmented to 136.25 million ton. Covid did cause some delays due to labor shortage and lockdowns. However, the company expects to commission all the projects as per original schedule.

Outlook:

With projects of Covid third wave, the company remains cautiously optimistic, given its inherent financial and operational resources and the government's continuous thrust on infrastructure activities and housing construction.