UltraTech Cement announces financial results for quarter ended 31 December 2019

24 January, 2020

Net Profit jumps 80%

	Consolidated		Standalone
	Q3FY20	Q3FY19	Q3FY20	Q3FY19
Net Sales	10,176	10,294	9,816	9,774
Normalised PBIDT	2,274*	1,707	2,083*	1,663
PBIDT	2,141	1,707	1,950	1,663
PAT	712	396	643	433

(*Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019, announced by the Government of India, UltraTech has provided a one-time expense of Rs. 133 crores as part of other expenditure, against various disputed and contingent liabilities)

UltraTech Cement Limited, today announced its unaudited financial results for the quarter ended 31st December, 2019.

Financials

Consolidated Net Sales was Rs. 10,176 crores compared to Rs. 10,294 crores over the corresponding period in FY19. Profit before Interest, Depreciation and Tax was Rs. 2,141 crores vis-à-vis Rs. 1,707 crores and Profit after Tax was Rs. 712 crores compared to Rs. 396 crores.

Corporate Developments

Acquisition of Century’s Cement Business

The Scheme of Demerger for acquiring the cement business of Century Textiles and Industries Limited became effective from 1st October, 2019. The Company’s financials were restated from 20th May, 2018, to include the financials of the acquired Century cement business, in terms of the National Company Law Tribunal, Mumbai Bench, sanctioning the Scheme of Demerger.

The plants have been ramping up production month on month touching a capacity utilisation of 79% in December, 2019. The Company has put in place a cost reduction plan to bring the operations in line with its existing standards. 55% of sales from the Century plants in December were under UltraTech brand. Brand integration is underway and is expected to reach 84% by Q2FY21. The overall integration is likely to be completed by end of Q2FY21. Given its vast experience in integrating acquired Units and bringing them up to its operating standards, the Company is confident on replicating the same at the acquired Century cement plants.

Bangladesh Operations

During the quarter, the Company’s wholly-owned subsidiary UltraTech Cement Middle East Investments Limited divested its entire shareholding in Emirates Cement Bangladesh Limited and Emirates Power Company Limited to HeidelbergCement Bangladesh Limited at a final Enterprise Value of BDT equivalent of US$ 30.2 Million.

UltraTech Nathdwara Cement Limited

UltraTech Nathdwara Cement Limited is fully integrated with the UltraTech systems and processes. The plants have achieved optimal efficiencies and are PBT accretive.

Acquisition in FY18

The 21.2 mtpa cement capacity acquired from Jaiprakash Associates in June, 2017 are operating in line with the existing plants of the Company. Phase I of the Bara Grinding Unit having capacity of 2 mtpa has been commissioned.

Outlook

Signs of revival were visible in some markets during the latter part of Q3FY20. This, together with the Government’s firm commitment to revive the economy and the thrust on infrastructure spending augur well for the growth of cement demand.

UltraTech, with its presence across all the zones in the country, is the best positioned to take advantage of the revival in cement demand, despite the anomalies that may get created in demand patterns in some parts of the country due to extraneous reasons.