Ultratech Cement net profit jumps 47% to ₹2,620 crore

India's largest cement maker Ultratech Cement on Friday posted a consolidated net profit of ₹2,620 crore for the quarter ended March 2022, up 47.6% year-on-year. The Aditya Birla Group company had posted a profit of ₹1,775 crore in the year-ago period.

Net sales of the company rose to ₹15,557 crore during the quarter compared with ₹14,232 crore over the corresponding period last year.

For the full fiscal, consolidated net sales stood at ₹51,708 crore compared with ₹44,239 crore over the previous year.

The cement manufacturer cautioned that input cost inflation remains a concern with the rise in fuel prices. "After a slow start to the quarter, demand improved month-on-month, driven by improvement in the government’s various project execution. Input cost inflation remains a concern with the rise in fuel and diesel prices," it said.

The company saw an increase in energy costs by 48%, with prices of petcoke and coal doubling during the period. Raw material cost increased 7% on account of the increase in the cost of fly ash, bauxite, gypsum, etc.

Ultratech said it achieved effective capacity utilisation of 90% during the quarter.

The company's board also recommended a dividend of ₹38 per equity share of ₹10 each, aggregating to ₹1,096 crore, for the year ended March 2022, subject to shareholders' approval.

The company said that rural and urban demand is expected to pick up going forward. "UltraTech's capital and financial resources remain fully protected and its liquidity position is adequately covered. Most importantly, it continues to remain committed to all its business associates," it said in its earnings release.

On Thursday, rival Ambuja Cement reported a 25.56% year-on-year drop in standalone net profit to ₹495 crore in the fourth quarter.

Net sales of the Holcim-owned cement maker stood at ₹3,855 crore during the quarter compared with 3,579 crore in the year-ago period. Sales volume for the quarter stood at 7.49 million tonnes compared with 7.24 million tonnes in the corresponding quarter last year. Operating EBIT margin fell to 16.6% in Q4 from 23.8% in the same quarter last year.

The company's Switzerland-based promoter is reportedly in talks with buyers to sell its two listed cement firms in India — ACC and Ambuja Cement.