Ultratech Cement Q4 Results: Profit Falls 32% On Tax Expense

Ultratech Cement Ltd. saw its net profit take a substantial hit in the fourth quarter due to a steep rise in tax expenses of continuing operations.

The cement manufacturer reported a 32.29% decline in consolidated net profit for the recently concluded March quarter at Rs 1,665.95 crore, as against an estimate of Rs 1,792.19 crore.

The drop in the bottom line came despite a double-digit rise in revenue from operations during the period under review.

Ultratech Cement Q4 FY23 Highlights (Consolidated, YoY)

• Revenue rises 18.36% to Rs 18,662.38 crore. Analysts tracked by Bloomberg had polled an estimate of Rs 18,498.85 crore.

• Ebitda rose 8.13% to Rs 3,322.49 crore, as compared with an estimate of Rs 3,368.67 crore.

• Ebitda margin at 17.8%, against an estimate of 18.2%.

• Net profit dropped 32.29% to Rs 1,665.95 crore, missing analyst estimates of Rs 1,792.19 crore.

Ultratech reported a current tax charge of Rs 800.82 crore and deferred tax charge of Rs 21.48 crore during the March quarter of fiscal 2023, as compared with current tax credit of Rs 139.26 crore and deferred tax credit of Rs 58.73 crore in the year-ago period.

During the fiscal ended March 2022, after prior tax assessments, the company had reversed accumulated provision for tax amounting to Rs 305.15 crore and the same has been utilised in the current year. The company had also accrued minimum alternate tax credit entitlement of Rs 1,213.94 crore, which has been utilised against the previous year's tax expense.

For the full year ended March 2023, the company reported 20.23% rise in revenue at Rs 63,239.98 crore in consolidated terms. The profit for the year declined over 29% to Rs 5,063.96 crore.

The board recommended a final dividend of Rs 38 per share for fiscal 2023. The company will seek shareholders' approval for the same at its upcoming annual general meeting.

Shares of Ultratech Cement closed 0.71% higher, as compared with a 0.76% rise in the benchmark Sensex. Results were declared after market hours.