UltraTech Cement Ltd, flagship firm of Aditya Birla Group, reported a higher-than-expected consolidated internet revenue of Rs 1,775 crore in March quarter, down 45 per cent from the corresponding interval final yr whilst internet gross sales jumped. The corporate reported consolidated internet revenue of Rs 3,243 crore in March 2020.
Web gross sales of the Aditya Birla Group firm stood at Rs 14,405 crore within the closing quarter of FY21, up 33 per cent from identical interval final yr on robust demand for the commodity.
As per Bloomberg estimates, the corporate’s topline was anticipated to be at Rs 13,460 crore, whereas the bottomline is estimated to be at Rs 1,644 crore within the interval below evaluation.
Tax bills price Rs 865 crore ate into the corporate earnings within the interval below evaluation, in flip dragging the bottomline.
Within the corresponding interval final yr, the practically Rs 2,000-crore deferred tax credit score offered agency help to the corporate’s bottomline taking the income to over Rs 3,000 crore.
UltraTech, in the course of the quarter, lowered internet Debt/EBITDA ratio to 0.55x from 1.72x as on March 31, 2020, which is in keeping with its endeavour to take care of optimum capital construction. EBITDA is earnings earlier than curiosity, taxes, depreciation and ammortisation.
The mortgage repayments have been made by way of free money flows that the corporate has generated in the course of the yr, regardless of the difficult circumstances and extreme enterprise interruptions throughout Q1FY21, knowledgeable the corporate through launch.
In the meantime, the corporate raised $400 million (roughly Rs 2,900 crore) by the use of issuance of unconditional, unsubordinated and unsecured USD denominated notes (within the type of “Sustainability Linked Bonds”), due sixteenth February, 2031 at 2.8 per cent every year, payable semi-annually on August 16 and February 16 of every yr, commencing from August 16, 2021 as per relevant legal guidelines. The Bonds are listed on the Singapore Trade Securities Buying and selling Restricted.
On capability enlargement, the corporate’s Board had earlier sanctioned capability enlargement plans of 19.5 million tonne by way of a mixture of brown discipline and inexperienced discipline enlargement overlaying 5 built-in cement crops and 12 grinding items.
“Many of the orders for tools have been positioned and civil work has additionally commenced at these areas,” knowledgeable the corporate.
Business manufacturing from these capacities is predicted to go on stream in a phased method, throughout FY22 and FY23.
Going forward, the corporate stated, whereas rural and semi-urban housing proceed to drive progress, pick-up in authorities led infrastructure aided incremental cement demand. Pent-up city demand can also be anticipated to enhance.
In the meantime, the corporate is carefully monitoring the impression of the second wave of the pandemic on its operations. With its concentrate on operational efficiencies and value management, UltraTech is healthier ready for any ensuing slowdown within the financial system, it stated immediately.