UltraTech Cement rebounds 5% from day's low on strong Q4 results

UltraTech Cement shares rose 2.4 per cent at Rs 4,305 in intra-day trde on the BSE after the company reported more-than-doubled standalone net profit at Rs 1,017 crore in the March quarter (Q4FY19), on the back of strong volume growth. The country’s largest cement company had a profit of Rs 488 crore in the same quarter an year ago.

The stock bounced back 5 per cent from its intra-day low of Rs 4,116 on the BSE. The trading volumes on the counter jumped three-fold with a combined 1.35 million shares changing hands on the NSE and BSE till 02:37 pm.

The company’s net sales during the quarter rose 18 per cent year on year (YoY) at Rs 10,334 crore. Domestic sales volume jumped 16 per cent YoY to 20.47 million tonnes. Ebitda (earnings before interest, tax, depreciation and amortization) improved 200 bps at 23 per cent from 21 per cent in year ago quarter.

UltraTech Cement said that the Binani Cement acquisition provided the company with an access to large reserves of high quality limestone. The capacity utilisation for Q4 reached its highest level in the last 28 quarters.

The firm is in the process of selling the non-core assets acquired in UAE/China, the sale proceeds of which will be used to deleverage the balance sheet.

The company's board of directors has recommended a dividend of Rs 11.50 per equity share of Rs 10 each for the year ended March 31, 2019.

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