Aditya Birla Group company UltraTech Cement reported a 37.8 per cent Y-o-Y decline in consolidated profit due to lockdown. But it has managed to beat street’s estimates which were pegged at Rs 480 crores for the quarter.
In total, revenue from operation fell 33.15 per cent to Rs 7,633.75 crores during the quarter under review. The revenue totalled Rs 11,419.74 crores in the corresponding quarter of last fiscal. You can find the company’s press release here.
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However, according to the company, there was a 22% drop in volume during the quarter. UltraTech Cement said it has managed the COVID-19 crisis with a sharp focus on operational efficiencies.
“In the available 68 operating days during this quarter, the company kept tight control on costs and cash flow, and achieved effective capacity utilisation of 60 per cent across its network of 54 plants around the country,” it said.
“General disruption as a result of the lockdown did impact business performance”, but some encouraging trends were seen during the latter part of May 2020, driven largely by better than expected pick-up in cement consumption in rural markets, it added.
The leading cement producer reduced its fixed costs by 21%. “The overheads control programme initiated by the management cut fixed costs by 21% year-on-year. Prudent working capital management and control on cash flows are reflected in a reduction of net debt by ₹2,209 crores during Q1FY21,” it said.
In conclusion, the company expects demand to increase in the coming months as state governments are pushing to run the economic activities