 "Dip in sales realisation mutes UltraTech net profit at Rs 1,696 crore")
For the quarter under review, the cement company reported a consolidated net profit of Rs 1,696.59 crore, against Rs 1688.45 crore a year ago. Revenue for the quarter was up 2 per cent at Rs 18,069 crore.
In a Bloomberg poll, 13 analysts estimated a revenue of Rs 18354 crore and a net income adjusted of Rs 1820 crore. On a sequential basis, UltraTech’s net profit fell 25 per cent.
Profit before interest, depreciation and tax, the company said, was at Rs 3,205 crore compared to Rs 3,223 crore a year ago.
Domestic cement sales volume, the company said, registered a six per cent growth from a year back. The company’s presentation noted that the sales realisation declined by 5.7 per cent from a year ago and 2.4 per cent sequentially. The company said that demand from the infrastructure sector either declined or was muted for all markets except Central India, in the June-24 ended quarter.
In its presentation, UltraTech noted completion of key infrastructure projects and election lull as contributors to the weak demand.
UltraTech also noted overall sector volumes in India’s south market witnessed a decline across segments, owing to labour shortage impact on housing demand, early onset of monsoon across regions except in Karnataka and Tamil Nadu and infrastructure demand decline due to funding issues.
In terms of costs, the company said, energy costs were lower by 17 per cent year-on-year (Y-o-Y), mainly on account of reduced fuel prices. Raw material costs marginally rose by a per cent, the company added, attributable to the increase in the cost of fly ash and slag.
With the aim to increase capacity to close to 200 million tonnes, UltraTech has undertaken multiple phases of expansion.
Sharing an update on these planned expansions, the company said, it has further added 8.7 million tonne per annum (MTPA) capacity during the quarter, across Tamil Nadu, Chhattisgarh, Andhra Pradesh, Maharashtra and Odisha. With this, the company said, total grey cement capacity of the company stands at 149.5 MTPA in India.
UltraTech said, commercial production for new capacities of the second phase of 22.6 MTPA announced in June, is expected to go on-stream in a phased manner by the current and the next financial year.
For the third phase of expansion, announced in October, the company said, major orders to key technology suppliers have already been placed and civil work has also commenced at some locations.
The company plans to end the current financial year with 157.0 MTPA capacity.
In its outlook for the sector and the company, the press statement said, UltraTech’s growth trajectory mirrors India’s growth story. Its scale will further enable the company to service the growing demand for cement across the country.
In its presentation, the company noted, continued focus on infrastructure development such as roads, rail, metros, etc. will be the key cement demand levers for FY25.
Gross debt for the company, as of June, was at Rs 13,179 crore, sequentially higher from Rs 10,298 crore in March this year.