UltraTech Cement (ULTRACEMCO) Q4 19/20 earnings summary

Executive summary

• FY20 combined revenue was ₹42,125 crore and EBITDA ₹9,930 crore; the annual operating EBITDA reached a record ₹1,154/t, while COVID-19 halted dispatches late in March and through April.

• Capacity expanded to 114.8 MTPA after the Century Cement acquisition, and consolidated net debt fell ₹5,251 crore despite significant capex.

Financial highlights

• Standalone net turnover was ₹40,033 crore, up 2% YoY; PBIDT was ₹9,379 crore, up 24%, supported by operating-cost savings.

• Standalone PAT was ₹5,456 crore, including a ₹1,805 crore deferred-tax-liability reversal; normalized PAT was ₹3,650 crore, up 51% YoY.

• Consolidated revenue was ₹42,125 crore, EBITDA ₹9,930 crore, and PAT ₹5,815 crore; consolidated EPS was ₹201.61.

• Grey cement production was 76.57 MMT, down 2%; total sales volume was 78.76 MMT, down 4%, as domestic sales declined 4%.

Outlook and guidance

• FY21 was expected to be subdued due to COVID-19, weak real estate and broader economic slowdown; phased operations resumed from 20 April 2020.

• FY21 cash capex was reduced to ₹1,000 crore to conserve cash, focused mainly on eastern grinding units, Bara Phase 2, Bicharpur Coal Block, WHRS and maintenance.

• Century plant integration was expected to finish by Q3FY21; UltraTech-brand sales at acquired plants were targeted to exceed 80% by Q3FY21.