UltraTech Cement Q3 Profit Jumps 67% to Rs 1,774.7 cr
Jan 19, 2024 15:24
UltraTech Cement reports a 67% surge in Q3 net profit to Rs 1,774.78 crore driven by lower costs and higher sales. Domestic sales volume rose 5% during the quarter.
Photograph: Amit Dave/Reuters
New Delhi, Jan 19 (PTI) UltraTech Cement Ltd on Friday reported a 67 per cent jump in consolidated net profit to Rs 1,774.78 crore for the December quarter, helped by lower fuel and raw material costs as well as higher sales and operational efficiencies.
The leading cement maker posted a consolidated net profit of Rs 1,062.58 crore in the year-ago period, according to a regulatory filing.
Its revenue from operations rose 7.85 per cent to Rs 16,739.97 crore during the period. It was Rs 15,520.93 crore in the corresponding period a year ago.
It reported the "highest-ever quarterly profit after tax" in the December quarter, a company's earnings statement said.
UltraTech's total expenses increased 2.88 per cent to Rs 14,531.04 crore during the quarter under review.
The total income of the Aditya Birla Group firm, which includes other income, grew 7.87 per cent to Rs 16,880.45 crore in the December quarter.
During the quarter under review, its domestic sales volume climbed 5 per cent and the company reported a capacity utilisation of 77 per cent.
Its sales volume stood at 26.06 million metric tonnes (MT), including grey cement at 25.44 MT.
"Domestic grey cement sales volume rose 5 per cent Y-o-Y (Year-on-Year) and 1 per cent Q-o-Q (Quarter-on-Quarter), respectively. Improved operational efficiencies, coupled with lower fuel and raw material costs resulted in improved EBITDA margins," it said.
The company's logistics cost "decreased 2 per cent Y-o-Y" in the December quarter and its energy cost also "decreased 16 per cent" Y-o-Y.
However, the raw material cost increased 3 per cent Y-o-Y because of gypsum and slag.
The company's 24 per cent power requirements were met through green power sources, it said, adding that UltraTech is moving towards the use of 85 per cent green power by the end of 2030.
In the December quarter, UltraTech Cement entered Jharkhand by acquiring a 0.54 Million Tonnes Per Annum (MTPA) cement grinding asset of Burnpur Cement Ltd, located at Patratu, for a consideration of Rs 169.79 crore.
On expansion, UltraTech said: "Work on the second phase of 22.6 MTPA announced in June 2022 is in full swing and will start commissioning during the current quarter itself, ahead of schedule".
For the third phase of growth of 21.9 MTPA announced in October 2023, major orders to key technology suppliers have already been placed and civil work has commenced in a few locations.
On the acquisition of 10.75 MTPA cement assets of Kesoram Industries, UltraTech Cement said, "applications have been filed with the stock exchanges for the proposed acquisition" and it will be consolidated with the company upon receipt of all regulatory approvals.
The company has a consolidated capacity of 138.39 MTPA of grey cement. It has 23 integrated manufacturing units, 29 grinding units, one clinkerisation unit and 8 bulk packaging terminals.
"Upon completion of these expansions/acquisition, the company's capacity will grow to 195.4 MTPA, including its operations in the UAE, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far," it said.
On the outlook, the company 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."
Shares of UltraTech Cement Ltd were trading 2.06 per cent higher at Rs 10,097.55 on the BSE.
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.