UltraTech Cement: Net profit surges 109 per cent

The consolidated financial performance of UltraTech Cement for the quarter ended March 2019 stands as follows:

The company's consolidated revenues (net of taxes) for the quarter ended March 2019 soared 17 per cent YoY to Rs. 10,739 crore in Q4FY19 from Rs. 9,168 crore in Q4FY18, reported the company in a release to the exchanges.

UltraTech Cement's EBITDA increased to Rs. 2,459 crore in Q4FY19 from Rs. 1,892 crore in Q4FY18, thereby surging 30 per cent. Consequently, EBITDA margin increased to 23 per cent in Q4FY19 from 21 per cent in Q4FY18. However, the company's PAT stole the limelight as it registered stellar growth of 127 per cent as it stood at Rs. 1,013 crore in Q4FY19 from Rs. 446 crore in Q4FY18. As a result, EPS too reported a growth of 127 per cent to Rs. 36.9 in Q4FY19 versus Rs. 16.2 in Q4FY18.

The company is focused on de-leveraging its balance sheet. Its EBITDA-to-cash conversion improved to 93 per cent. The company succeeded in reducing its working capital by Rs. 900 crore. In Q4, it lowered its leverage by 0.73x. On a QoQ basis, it lowered its debt by Rs. 2,205 crore in Q4FY19 to Rs. 19,593 crore in Q4FY19. It generated free cash flows to the tune of Rs. 2,180 crore in Q4FY19.

In Q4FY19, the company increased its penetration in the retail segment by 200 bps QoQ. Furthermore, on a QoQ basis, the sales volumes of blended products increased 100 bps, sales volumes of ready-mix concrete surged 10 per cent and the price improved 1-2 per cent.

On the cost front, logistics costs dipped 2 per cent YoY to Rs. 1,146/t, while the energy costs increased by 7 per cent YoY to Rs. 1,057/t. On the other hand, raw material costs remained flat YoY at Rs. 472/t. The company managed to optimize costs due to a reduction in fuel prices, improved consumption rates and no major shutdowns.

The company reported an interim dividend of Rs. 11.50 per equity share for the year ended March 31st, 2019.

On Thursday, the shares of UltraTech Cement opened at Rs. 4,426.00 and hit a high and low of Rs. 4,686.30 and Rs. 4,426.00, respectively. At 3:09 pm, the stock was trading at Rs. 4,622.30, up 5.14 per cent.