UltraTech Cement Limited has reported a three-fold jump in its fourth quarter net profit to ₹3,243 crore, by gains from reversal of Income Tax.

The rise in profit came on on a 13% drop in sales to ₹10,579 crore as cement volumes declined.

According to the company, its normal profit after tax was ₹1,131 crore, while it had got the benefit of reversal of deferred tax of ₹2,112 crore during the quarter.

“In the face of the unprecedented situation arising out of the pandemic, the company’s operations across locations were shut down in line with the government directives. Construction activity across the country was halted, which is normally at its peak in the month of March, leading to an adverse impact on the company’s operations during the quarter ended March 31, 2020,” said UltraTech in a statement.

The Aditya Birla Group company said during the year it had successfully reduced its net debt/EBITDA ratio to 1.7 from the 2.83 as on March 31, 2019.

Ultratech’s debt as on March 31, 2020 stood at ₹16,860 crore compared with ₹22,111 crore a year ago.

“The company resumed operations at its establishments after obtaining necessary government approvals and ensuring compliance with the statutory guidelines,” the company said in filing to the exchange.The board has recommended a dividend of 130% at ₹13 per equity share of face value of ₹10 per share, aggregating to ₹375.21 crore.