How were the quarterly results of Ultratech in the Dec-20 quarter?

It was a set of fantastic results. Ultratech Ltd Q3 PAT more than doubled on a yoy basis to Rs.1,585 crore as the government embarked on a massive infrastructure push. Ultratech revenues grew by 17.38% in the Dec-20 quarter to Rs.12,254 crore. In fact, Ultratech reported 14% growth in domestic volumes amidst favorable pricing for cement companies. Demand was largely driven by government spending on infrastructure.

Operating profits were up 86% at Rs.2420 crore. This was largely on the back of the sales revenues growing much faster than the costs. This lead to better capacity utilization which meant that fixed cost got better absorbed into the financials. As a result, the OPM expanded sharply from a level of 12.46% in Dec-19 quarter to 19.75% in the Dec-20 quarter.

The Profit after tax or PAT was up 122.81% on the back of better operational performance. The sharp growth in profits was largely driven in the quarter by volumes growth supported by better prices along the way with Ultratech already the largest cement maker in India. The PAT margins nearly doubled from a level of 6.81% in Dec-19 to an elevated level of 12.93% in Dec-20.

The company plans to continue to expand its market share and to that effect; Ultratech has approved investment of Rs.5477 crore to enhance the capacity of the company by 12.8 million tons per annum or MPTA. The expansion plans will be concentrated in the east, central and Northern region which are the fastest growing markets for cement today.