UltraTech Q2 net up 69% at ₹1,280 crore
UltraTech also reported a 15.24% year on year increase in its consolidated net sales to ₹16,179 crore in the July-September quarter from ₹14,039 crore in the same quarter last year.
UltraTech Cement, the flagship company of the Aditya Birla Group, reported a ₹1,280.38 crore profit during the second quarter of the current fiscal, an increase of 69% over the same period last year.
UltraTech also reported a 15.24% year on year (YoY) increase in its consolidated net sales to ₹16,179 crore in the July-September quarter from ₹14,039 crore in the same quarter last year, it said in an exchange filing.
Consolidated earnings before interest, tax, depreciation, and amortization (Ebitda) for the company stood at ₹2,718 crore during the quarter, a 35% increase over last year.
The company attributed this increase in profit to the cement demand that has maintained its positive momentum during Q2FY24. Its profit was partly driven by lower fuel costs during the year.
“The company witnessed demand from all sectors, fuelled by government-led infrastructure, rural development, and urban residential demand,” it added.
The Kumar Mangalam Birla-led company recorded total expenses of ₹14,493 crore during the quarter, with raw material costs increasing by 4% YoY on account of an increase in the cost of flyash and slag, while energy cost was 10% lower YoY.
Analysts expect the demand for cement to grow in double digits.
“We expect industry volume to grow by 10% YoY in FY24. Given the recent fuel price rebound, we estimate input cost reduction will bottom out in Q3FY24. However, as the industry took a price hike in Q2, we expect the cost inflation to be offset, but remain positive on the sector,” said Rajesh Ravi, Institutional Research Analyst at HDFC Securities.
On the back of rising demand, the company’s capacity utilisation stood at 75% during the quarter on expanded capacity.
The company also reported that its ongoing capacity expansion is progressing as per schedule.
“(About) 5.5 mtpa capacity has already been commissioned during this financial year following a 12.4 mtpa capacity addition during FY23,” it said.
The company also commissioned 30 MW of WHRS capacity during the quarter. Green power now contributes 22% of the total power requirement with 262 MW of WHRS and 429 MW of renewable energy, it added.
The company’s total grey cement manufacturing capacity in India now stands at 132.45 mtpa (million tons per annum). “Work on the second phase of growth of 22.6 mtpa is in full swing. As part of this project, we are adding another 1.8 mtpa of slag grinding capacity taking the total of phase 2 to 24.4 mtpa. Commercial production from all these new capacities is expected to go on stream in a phased manner by FY25/FY26,” it further said in the statement.
India is the second-largest cement producer in the world and accounts for over 8% of the global installed capacity. In 2022, the market size of India’s cement industry reached 3.64 billion tonnes and is expected to touch 4.83 billion tonnes by 2028, exhibiting a CAGR of 4.94% during 2023-28. Currently, the installed cement capacity in India is 553 MTPA with a production of 298 MTPA.
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First Published:19 Oct 2023, 10:17 PM IST
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