The company posted much-better-than-expected set of Q2FY15 numbers. Consolidated net sales came in at Rs.5723 crore, an 18% (YoY) jump. The combined cement and clinker sales was 10.35 MnT (9.22 MnT) while it was 3.02 LmT (2.94 LmT) for white cement and wall care putty. During the quarter, domestic cement sales volume increased by 11% on the back of higher demand and additional volume from the acquired Units in Gujarat. Costs were impacted mainly on account of increase in prices of petcoke, input material and royalty on limestone.

EBITDA for the quarter was at Rs.987 crore, up 28% and net profit was at Rs.416 crore, up 47%.  The company had acquired Jaypee’s cement unit and this has helped Ultra increase its capacity first to 58.8 mtpa and then with the commissioning of its cement mill in Karnataka in Q2, the capacity now stands at 60.2 mtpa. The company’s on-going capex is on track. Its total total power capacity (including WHRS) is at 733 MW and the good news is that this takes care of company’s 80% power needs. Hopefully, going ahead, this will help bring down the power and fuel cost, which at end of H1FY15 was at Rs.2539 crore, up 20%. Looking ahead, the company has stated that cement demand is slated to grow over 8%. The key value drivers will be renewed government focus on housing and infrastructure spending.