Ultratech Cement's Q3 consolidated PAT drops by 38% YoY to ₹1,058 cr, revenue rises on strong volumes
2 min read . Updated: 21 Jan 2023, 02:35 PM IST
Premium- In Q3FY23, the company's domestic grey cement sales volume rose 13% YoY and 12% QoQ, respectively. Energy and raw material costs were up 33% and 13% YoY, while they remained flat on a sequential basis. Also, the company achieved capacity utilisation of 83% as against 75% during Q3FY22.
Leading cement manufacturer, Ultratech Cement witnessed a mixed performance in terms of profitability in December 2022 quarter (Q3FY23), however, revenue garnered strong growth. Consolidated Q3 PAT dropped by 38.03% to ₹1,058.20 crore compared to ₹1,707.72 crore in the same quarter a year ago. However, sequentially, the company's PAT rose by 40.02% as against a profit of ₹755.73 crore posted in the September 2022 quarter.
Consolidated revenue from operations came in at ₹15,520.93 crore in Q3FY23, rising by 19.53% from ₹12,984.93 crore in Q3 of the previous fiscal. Also, revenue was up by 11.72% from ₹13,892.69 crore in the preceding quarter.
Notably, UltraTech holds its operating profits with strong volume growth despite cost pressures. EBITDA came in at ₹2,462 crore during the quarter.
Ultratech is the largest producer and manufacturer of grey cement, ready-mix concrete, and white cement in the country.
In Q3FY23, the company's domestic grey cement sales volume rose 13% YoY and 12% QoQ, respectively. Energy and raw material costs were up 33% and 13% YoY, while they remained flat on a sequential basis. Also, the company achieved capacity utilisation of 83% as against 75% during Q3FY22.
During the quarter, Ultratech commissioned 18 MW of WHRS and 7 MW of solar power during the quarter. With these expansions, UltraTech's green energy share has gone up to 19.8% which includes 208 MW of WHRS and 325 MW of solar power.
In grey cement, the company commissioned 5.5 mtpa new capacity during Q3FY23 --- of which ---- 1.9 mtpa greenfield integrated cement plant at Pali Rajasthan; 1.8 mtpa greenfield grinding unit at Dhule, Maharashtra; and 1.8 mpta brownfield 2nd integrated unit at Dhar Madhya Pradesh.
Further, in the grey cement segment, Ultratech said, "Work on the second phase of growth of 22.6 mtpa announced during Q1FY23 has already commenced. Main plant orders have been placed and civil work started at most sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25."
Upon completion of these expansions, Ultratech expects its capacity to grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far.
In terms of white cement, Ultratech highlighted that the third Birla White wall care putty plant at Nathdwara, Rajasthan, with a capacity of 4 lac tpa was commissioned during the quarter. The existing two plants are situated at Kharia in Rajasthan and Katni in Madhya Pradesh. UltraTech now has a wall care putty capacity of 13 lac tpa, further strengthening its position in the markets.
Along with its existing white cement manufacturing capacity in India and its investment in Ras Al Khaimah Company for White Cement and Construction Material, UAE, UltraTech is strategically positioned to cater to the white cement and wall care putty market in the country, it said.
On the outlook ahead, Ultratech said, given the government's focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years.
