UltraTech Cement Limited, Aditya Birla Group’s cement flagship, has announced the Q4FY22 and FY22 financial results today. UltraTech’s Net Sales for FY22 cross Rs.50,000 crore milestone! FY22 net sales up 16.9% to Rs.51,708 crores. UltraTech has reported robust earnings for the fourth quarter amidst challenging conditions for the cement industry. Consolidated Net Sales for Q4FY22 at Rs.15,557 Cr. Profit before interest, depreciation and tax was at Rs.3165 Cr.
Some of the key highlights are as follows:
- Demand situation improved month on month driven by Government’s infra push.
- Effective capacity utilization of 90% during the quarter.
- Energy costs increased by 48% with prices of petcoke and coal doubling during the period.
- Consolidated net debt to EBITDA as on March’22 is 0.32x.
- UltraTech commenced 42 MW of WHRS capacity during FY22.
- Green energy share has improved to 19.7% in the fourth quarter.
The table below captures the financial performance at a glance.
(Rs. in crores)
| Consolidated | Standalone | |||||||||
| Q4FY’22 | Q4FY’21 | FY’22 | FY’21 | Q4FY’22 | Q4FY’21 | FY’22 | FY’21 | |||
| Net Sales | 15,557 | 14,232 | 51,708 | 44,239 | 14,945 | 13,784 | 49,729 | 42,677 | ||
| PBIDT | 3,165 | 3,751 | 12,022 | 12,302 | 3,088 | 3,597 | 11,548 | 11,754 | ||
| PBT | 2,255 | 2,676 | 8,363 | 8,116 | 2,276 | 2,643 | 8,293 | 8,060 | ||
| Normalised PAT | 1,478 | 1,814 | 5,667 | 5,530 | 1,471 | 1,778 | 5,549 | 5,342 | ||
| PAT | 2,620 | 1,775 | 7,344 | 5,463 | 2,454 | 1,778 | 7,067 | 5,342 |
FINANCIALS
Q4FY2021-22
Consolidated Net Sales at Rs. 15,557 crores vis-à-vis Rs. 14,232 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs. 3,165 crores vis-à-vis Rs. 3,751 crores in the corresponding period of the previous year. Normalised Profit after tax was Rs. 1,478 crores compared to Rs. 1,814 crores in the corresponding period of the previous year.
FY22
For the full year, Consolidated Net Sales at Rs. 51,708 crores vis-à-vis Rs. 44,239 crores over the previous year. Profit before interest, depreciation and tax was Rs. 12,022 crores vis-à-vis Rs. 12,302 crores in the corresponding period of the previous year. Normalised Profit after tax was Rs. 5,667 crores compared to Rs. 5,530 crores in the corresponding period of the previous year.
OPERATIONS
After a slow start to the quarter, demand improved month on month, driven by improvement in the government’svarious project execution.Input cost inflation remains a concern with the rise in fuel and diesel prices.
The Company saw an increase in energy cost by 48%, with prices of petcoke and coal doubling during the period.Raw material cost increased 7% on account of the increase in the cost of fly ash, bauxite, gypsum and HSD. The Company’s efforts towards prudent working capital management and control on cash flows, continued relentlessly.
UltraTech achieved effective capacity utilisation of 90% during the quarter.
DIVIDEND
The Board of Directors at their meeting held today have recommended a dividend of 380% at the rate of Rs. 38/- per equity share of face value of Rs.10/- per share, aggregating Rs. 1,096.95 crores. In terms of the provisions of the Finance Act, 2020, the dividend shall be taxed in the hands of shareholders at applicable rates of tax and the Company shall withhold tax at source appropriately.
CAPEX
UltraTech’s current expansion program is on track and estimated to be completed by the end of FY23.
SUSTAINABILITY
In line with its continuing endeavour towards enhancing environment conservation measures, the Company commenced 42 MW of WHRS capacity during the year. With this, the Company’s total WHRS capacity stands augmented to 167 MW covering nearly ~16% of its current power needs. This is expected to increase to 280 MW by the end of FY23, after completing the on-going expansions.UltraTech remains focused on accelerating the decarbonisation of its operations.
GOING FORWARD
UltraTech’s capital and financial resources remain fully protected and its liquidity position is adequately covered. Most importantly, it continues to remain committed to all its business associates. Rural and urban demand is also expected to pick up going forward. All of this augur well for the Company.