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Home STOCKS UltraTech Cement Q1 takeaways: Financial debt falls, cash flow era stays potent...

UltraTech Cement Q1 takeaways: Financial debt falls, cash flow era stays potent inspite of pandemic

NEW DELHI: UltraTech Cement stated it created robust cash flows for the duration of the lockdown impacted quarter, strengthening its balance sheet. The cement maker also managed to cut the preset charge by 21 per cent during the April-June period of time.
Building projects had been stopped in March onwards and started only in mid-May perhaps having cement sales down in the dumps. Factories of the firm were being also questioned to prevent production throughout the period of time.
How a great deal did the business get paid?
The organization defeat analyst estimates by a huge margin and reported net profit at Rs 806 crore, a 36.4 for each cent calendar year-on-12 months (YoY) fall. The revenue or full sales for the quarter fell 32.81 for every cent YoY to Rs 7,290 crore.
What was the impact of Covid-19?
Standard disruption as a result of the lockdown did influence enterprise functionality, the business mentioned, but it claimed a speedy recovery in production. In the accessible 68 running times all through this quarter, the business realized an efficient capacity utilisation of 60 per cent across its community of 54 crops about the place.
Is there any advancement in the cash position of the enterprise?
The company explained its concentrate on conserving cash ongoing unabated through the quarter. The ‘overheads control programme’ initiated by the administration minimize set expenditures by 21 for each cent YoY.
“Prudent working capital administration and control on cash flows are reflected in a reduction of internet credit card debt by Rs 2,209 crore in the course of Q1FY21,” the administration reported.
What is management’s see on dealing with pandemic?
The management claimed they are intently checking the impact of Covid-19 on its functions. Its capital and fiscal means continue to be totally guarded and its liquidity position is sufficiently covered. Most importantly, the enterprise carries on to continue to be committed to all its business enterprise associates, they included.
Any update on acquisitions- sale?
The enterprise said the 14.6 mtpa cement crops, which it obtained for the duration of the previous money year, have been generating superior development on integration, accomplishing an working Ebitda margin of 21 for each cent as compared to the all India normal of 28 for each cent. “Once the markets open up, the overall performance will improve even more in line with the present functions,” the company claimed.
Apart from, the enterprise is also doing the job on offering its stake in a Singapore-dependent subsidiary, Krishna Holdings. UltraTech expects the transaction to be done by the stop of August, 2020 and the sale proceeds will be employed to lower leverage.

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