Quarter ended Dec 2021 compared with Quarter ended Dec 2020

Net sales (including other operating income) of UltraTech Cement has increased 5.90% to Rs 12984.93 crore.  

Operating profit margin has declined from 25.30% to 18.63%, leading to 22.01% decline in operating profit to Rs 2,419.38 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 13.48% to 13.22%.   Purchase of finished goods cost rose from 2.02% to 2.56%.   Employee cost increased from 4.93% to 4.96%.   Other expenses rose from 54.53% to 60.61%.   Power and Oil fuel cost rose from 19.39% to 24.84%.   Freight charges fell from 23.00% to 22.39%.   

Other income fell 72.89% to Rs 70.5 crore.  PBIDT fell 25.94% to Rs 2489.88 crore.  Provision for interest fell 48.83% to Rs 182.31 crore.  

PBDT fell 23.23% to Rs 2307.57 crore.  Provision for depreciation rose 0.04% to Rs 674.19 crore.  

Profit before tax down 29.96% to Rs 1,633.38 crore.  Provision for tax was credit of Rs 76 crore, compared to debit of Rs 747.4 crore.  Effective tax rate was negative 4.65% compared to 32.05%.

Minority interest increased 908.33% to Rs 2.42 crore.  Net profit attributable to owners of the company increased 7.79% to Rs 1,707.72 crore.  

Promoters' stake was 59.96% as of 31 December 2021 ,compared to 59.97% as of 31 December 2020 .   

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of UltraTech Cement has increased 21.51% to Rs 36831.55 crore.  

Operating profit margin has declined from 25.98% to 22.92%, leading to 7.16% rise in operating profit to Rs 8,441.60 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 12.84% to 13.37%.   Purchase of finished goods cost rose from 1.87% to 2.11%.   Employee cost decreased from 5.79% to 5.10%.   Other expenses rose from 53.32% to 56.83%.   Power and Oil fuel cost rose from 18.72% to 21.85%.   Freight charges fell from 22.47% to 22.01%.   

Other income fell 39.06% to Rs 415.42 crore.  PBIDT rose 3.57% to Rs 8857.02 crore.  Provision for interest fell 33.39% to Rs 738.4 crore.  

PBDT rose 9.08% to Rs 8118.62 crore.  Provision for depreciation rose 0.46% to Rs 2011.39 crore.  

Profit before tax grew 12.25% to Rs 6,107.23 crore.  Provision for tax was expense of Rs 1388.05 crore, compared to Rs 1673.85 crore.  Effective tax rate was 22.72% compared to 33.83%.

Minority interest decreased 2,146.67% to Rs -3.37 crore.  Net profit attributable to owners of the company increased 44.29% to Rs 4,723.88 crore.  

Promoters' stake was 59.96% as of 31 December 2021 ,compared to 59.97% as of 31 December 2020 .  

Capital Expenditure:

The board approved CAPEX of Rs 965 cr towards modernization and expansion of capacity at Birla White from the current 6.5 LTPA to 12.53 LTPA, in a phased manner.

• The company commenced operations from its bulk terminal at Kalamboli, Navi Mumbai. With a capacity to handle 1.2 MTPA cement and considering the large infrastructure development projects in and around Mumbai, the bulk terminal will strengthen the company to further its sales of bulk cement.
• The company commissioned Line II of the Bara Grinding unit in Uttar pradesh, having cement capacity of 2 MTPA. Line I was earlier commissioned in Jan 2020 and is already operating at a capacity utlization of more than 80%. This additional capacity will help the company to sevice the fast growing demand in Central region of India.
• WIth this expansion, during the financial year 2021-22, the company has commissioned 3. MTPA new cement capacity, as planned, taking its total cement manufacturing capacity in India to 114.55 MTPA>

 Outlook: 

During the quarter, trade sales were impacted more than non-trade sales, ass overall cement demand remained subdued. With the onset of the peak season and rising construction activities, cement demand is expected to revive in Q4FY2022, driven by a pick-up in the government-led infrastructure and housing projects. Rural and urban demand is also expected to pick up going forward. All of this augur well for the Company.