UltraTech Cement reports better operating performance

UltraTech Cement reported its third-quarter result today. Its consolidated revenue remained largely flat at Rs 10,176 crore in Q3FY20 as compared to Rs 10,294 crore in the corresponding quarter of the previous year. Domestic sales volume in the quarter was at 19.41 million tonne, down by 3 per cent YoY.

Normalised EBITDA for the quarter was at Rs 2,274 crore, up by nearly 33 per cent on YoY basis. EBITDA margin during the quarter improved to 22 per cent from 17 per cent in Q3FY19. This was led by 15 per cent and 5 per cent decline in energy and logistics cost.

Normalised PAT jumped nearly 80 per cent YoY to Rs 712 crore.

EBITDA improved to Rs 1,004/tonne as against Rs 741/tonne in Q3FY19. Notably, the company in-line with its aim reduced debt during the quarter by Rs 1,994 crore to Rs 18,625 crore.

The utilisation level of Century’s acquired plants is ramping up rapidly and as on Q3YF20, it was at 79 per cent. Further, UltraTech enhanced pet coke consumption in these plants went to 69 per cent from ~30 per cent in pre-acquisition.

With response to this result, the stock of UltraTech Cement surged on the bourses by nearly 3.3 per cent to touch an intraday high of Rs 4679.85.