Ultratech Cem

The largest cement maker of India, this Aditya Birla group company, on the basis of its operating efficiency has managed to debunk lower realisations and posted a 29% (YoY) jump in consolidated net profit at Rs.780 crore on a 4% jump in net sales at Rs.6538 crore. Sales volume was at 12.57 mt, volumes up 6%. The best part – it reduced its costs by 7% and is now one of the lowest cost per tonne cement maker – total cost for the quarter was at Rs.3643/tonne.

Energy cost was down 24% (YoY) and this was thanks to the higher usage of petcoke. Thus its kiln fuel mix now comprises of 74% pet coke, 18% imported coal and 8% indigenous coal and others. It is this change in fuel mix which is giving the company very good operating efficiencies, translating into healthier profits.

Its average sales realization was at Rs.4683/tonne, which YoY was 2% down but sequentially was up 3%. EBITDA for the quarter came in at Rs.1573 crore, up 24% and margin has risen from 21% to 25%. The company’s consolidated net debt is down 44% at Rs.1969 crore.