UltraTech Cement Ltd records net sales of INR105.8bn in 4QFY19-20
UltraTech Cement Ltd (Aditya Birla Group) announced its financial results for the 4Q and full year ended 31 March 2020.
4QFY19-20
Consolidated net sales reached INR105.8bn (US$1.39bn) vis-à-vis INR121.7bn in the corresponding period of the previous year. Profit before interest, depreciation and tax was at INR26.4bn versus INR26.72bn in the year-ago period. Profit after tax was INR32.43bn compared to INR10.64bn in the 4QFY18-19.
Full-year results
For the full year, consolidated net sales totalled INR414.76bn versus INR409.04bn over the previous year. Profit before interest, depreciation and tax improved by 27 per cent at INR99.3bn versus INR78.11bn in the corresponding period of the previous year. Profit after tax was INR58.15bn compared to INR24.04bn in the corresponding period of the previous year. This includes a one-time tax gain of INR21.12bn. However, the company has still achieved a growth of 54 per cent without this one-time gain.
During the year the company with its prudence and deft financial management has successfully reduced its net debt/EBITDA ratio to 1.7x from 2.83x as on 31 March 2019.
In line with its continuing endeavour towards enhancing environment conservation measures, UltraTech commenced 33MW of WHRS capacity during the year. With this, the company's total WHRS capacity rises to 118MW. This is expected to increase to 145MW by the end of FY20-21, after completion of the other ongoing expansions.
The Scheme of Demerger for acquiring the cement business of Century Textiles and Industries Ltd became effective from 1 October 2019.
The plants have been ramping up production MoM, touching average capacity utilisation of over 80 per cent during the quarter ended in March. The company has put in place a cost reduction plan to bring the operations in line with its existing standards. Approximately 65 per cent of sales from the acquired Century plants, during the quarter, were under the UltraTech brand. Brand integration is underway and is expected to reach more than 80 per cent by 3QFY20-21. The quarter witnessed a remarkable improvement in operating margin, reports UltraTech. The overall integration is likely to be completed by end of the3QFY20-21.
Phase I of the 2Mta Bara Grinding Unit has been commissioned. The project was part of the 21.2Mta capacity acquired in June 2017. The operations of this acquisition are fully integrated with the company and working smoothly, claims UltraTech.
COVID-19
In the face of the unprecedented situation arising out of the pandemic, the company’s operations across locations were shut down in line with the government directives. Construction activity across the country was halted, which is normally at its peak in the month of March, leading to an adverse impact on the company’s operations during the quarter ended 31 March 2020. From 20 April 2020 the company resumed operations at its establishments after obtaining necessary government approvals and ensuring compliance with the statutory guidelines.
