Construction Industry News
Cement major Ultratech Cement on Monday reported an 8% increase in consolidated net profit to Rs 1,708 crore for the quarter ended December 31, 2021. It was Rs 1,584 crore in the same period a year ago.
Consolidated net sales increased marginally to Rs 12,710 crore compared to Rs 12,144 crore a year ago.
“With the ommicron variant of COVID-19 spreading rapidly, its impact on the economy remains to be seen. With business continuity plans, UltraTech is better able to overcome the current wave of the pandemic. closely monitor the impact on its business," the company said in a grant application.
After accelerating in October 2021, demand slowed significantly in November 2021 due to the construction ban in the NCR, extended monsoons in the south and some states in the north, sand problems in the eastern region and parts of Uttar Pradesh and the holiday season of Diwali, the flagship company of the Aditya Birla Group said of its activities.
“The company nevertheless managed to maintain a strong growth trajectory, growing 13.2% in its domestic cement sales volumes in the nine months ended December 2021, despite a marginal growth slowdown in the reported quarter. Prices of coke and international coal have started to fall this quarter, although prevailing tariffs are still at a high level, the company said.
On Monday at 1408, the company's scrip on BSE was trading 0.3% lower against Rs 7,630.35.
Operating income increased 5.89% to Rs 12,984.93 crore during the reporting quarter compared to Rs 12,262 crore in the corresponding period of the last fiscal year, the company said in a BSE filing.
On the outlook, UltraTech said third quarter trade sales were impacted and demand remained subdued, but is expected to recover in the January-March quarter.
With the onset of the peak season and increasing construction activity, cement demand is expected to pick up again in Q4FY22, driven by an uptick in government-led infrastructure and housing projects. In the future, demand in rural and urban areas is also expected to increase. All of this bodes well for the company, it said.
In addition, UltraTech repaid loans amounting to Rs 3,459 crore during the October-December quarter.
"The repayments were funded through internal accruals and have reduced the company's exposure to floating interest rates," the company said.
During the quarter, UltraTech's consolidated sales were 23.13 million tons, a 3% year-over-year decline.
The company has managed to maintain a strong growth trajectory so far, growing 13.2% in its domestic cement sales volumes in the nine months ended December 2021, despite marginal growth in the reported quarter. business.
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