The Cement Manufacturing Company reported a consolidated profit of Rs 711.3 crore for the third quarter FY20, reporting a year-on-year growth of 90.2 percent, And a revenue of Rs 10,354 crore that fell 0.9 percent YoY.
The company reported an earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 1,973 crore , an increase of 23.7 percent YoY and margin expanded by 380bps to 19.1 percent during the quarter.
The company’s standalone adjusted net profit grew 79 percent YoY led by a 4.4 percent rise in realisation and flat opex.
The company showed strong operating performance while Century’s exit capacity utilisation improved to 79 percent. Consolidated net debt reduced by Rs 3,486 crore leading to drop in net debt/EBITDA to 1.87x from 2.83x in FY2019.
UltraTech said it would expand capacity by 3.4 MTPA in the east which is expected to commission by FY2021-end and the integration of Century’s cement business is likely to be completed by the end of Q2FY21.
UltraTech remains the best candidate in cement sector to play Indian infrastructure and housing theme. It is expected to be one of the key beneficiaries from the government infrastructure spend and affordable housing.
It is expected that the company will beat street expectation on fast turnaround of Century cement, backed by improvement in realisations and lower energy and logistic costs.