UltraTech Cement, a leading player in the cement industry, has encountered a GST setback as it received an order from the Assistant Commissioner, CGST & C. Ex Division 3, Bhavnagar. The order demands a payment of Rs 1.14 crore, inclusive of interest and penalty, alleging non-payment of differential GST on royalty for mined limestone. The company, however, plans to contest the order through legal channels, citing that the differential duty with interest had already been deposited but not acknowledged by the authority.
In a regulatory filing, UltraTech Cement detailed the order, stating, "Order passed confirming demand for GST Rs. 1,14,87,546 + Interest + Penalty Rs 1,14,87,546 on differential GST @13% (18% less 5%) on royalty on mined limestone."
Despite this challenge, UltraTech Cement reported an impressive growth of 68.76% in its consolidated net profit for the quarter ending September 30, 2023. The profit after tax surged to Rs 1,280.38 crore in Q2 FY24, compared to Rs 758.70 crore in the same quarter of the previous fiscal year.
The company's total consolidated income also witnessed a substantial increase, reaching Rs 16,179.26 crore in Q2 FY24—a growth of 15.25% from Rs 14,038.95 crore in the corresponding quarter last year.
As of September 30, 2023, UltraTech Cement's financial indicators reflected a robust position in the market. The net worth stood at Rs 58,203.83 crore, with a debt-equity ratio of 0.18. The total debts to total assets ratio was 11%, the current ratio was 1.05, and the operating margin was 16%. The net profit margin remained strong at 8%, showcasing the company's financial stability despite the current GST-related challenge.
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