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UltraTech: Will the second half of FY16 be better? - Views on News from Equitymaster
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  • Oct 28, 2015 - UltraTech: Will the second half of FY16 be better?

UltraTech: Will the second half of FY16 be better?
Oct 28, 2015

UltraTech Cement has announced its financial results for the second quarter of the financial year 2015-16 (2QFY16). During the quarter, the company's consolidated net sales and net profit increased by 4% YoY and 3.1% YoY respectively. Here is our analysis of the results:

Performance summary

  • On a consolidated basis, sales rise by 4% YoY during the quarter.
  • Operating profits grow by 10% YoY as operating margins improve from 15.5% in 2QFY15 to 17.9% in 2QFY16.
  • Finance costs decline by 4.8% YoY
  • Tax expenses shoot up by 80.3% YoY.
  • Consolidated net profit increases by 3.1% YoY during the quarter.

Consolidated financial performance snapshot

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Sales 57,206 59,512 4.0% 117,074 123,218 5.2%
Expenditure 48,313 49,549 2.6% 97,813 101,850 4.1%
Operating profit (EBITDA) 8,893 9,963 12.0% 19,261 21,369 10.9%
Operating profit margin (%) 15.5% 16.7%   16.5% 17.3%  
Other income 982 1,070 9.0% 3,569 2,489 -30.3%
Depreciation 3,195 3,517 10.1% 6,011 6,530 8.6%
Finance costs 1,530 1,456 -4.8% 2,628 2,937 11.8%
Profit before tax 5,150 6,059 17.7% 14,191 14,391 1.4%
Tax 991 1,788 80.3% 3,751 4,210 12.2%
Effective tax rate 19.2% 29.5%   26.4% 29.3%  
Profit after tax 4,159 4,272 2.7% 10,440 10,181 -2.5%
Minority Interest 16 2 -87.7% 28 - NA
Net profit 4,142 4,270 3.1% 10,412 10,181 -2.2%
Net profit margin (%) 7.3% 7.2%   8.9% 8.3%  
No. of shares (m)       274.4 274.4  
Diluted earnings per share (Rs)*         75.6  
P/E ratio (x)*         38.3  

*trailing twelve-month earnings

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