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Informist, Thursday, Jan. 23, 2025

 

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--UltraTech Oct-Dec consol net profit INR 14.70 bln 
--Analysts saw UltraTech Oct-Dec consol net profit INR 13 bln 
--UltraTech Oct-Dec consol net profit INR 14.70 bln vs INR 17.77 bln 
--UltraTech Oct-Dec consol revenue INR 171.93 bln vs INR 167.40 bln yr ago 
--UltraTech Apr-Dec consol net profit INR 39.86 bln vs INR 47.47 bln yr ago 
--UltraTech Apr-Dec consol revenue INR 508.98 bln vs INR 504.89 bln yr ago 
--UltraTech Oct-Dec consol EBITDA INR 31.31 bln vs INR 33.95 bln year ago 
--UltraTech Oct-Dec capacity utilisation at 73% 
--UltraTech Oct-Dec domestic sales volume up 10% on year 
--UltraTech Oct-Dec energy cost down 13% YoY on fall in fuel cost 
--UltraTech Oct-Dec operating EBITDA/tn INR 964 vs INR 1,208 year ago 
--UltraTech Oct-Dec domestic grey cement volume 28.10 mln tn, up 10.5% YoY 
--UltraTech Oct-Dec domestic grey cement sales INR 139.69 bln, dn 0.1% YoY 
--UltraTech Oct-Dec white cement revenue INR 6.41 bln, down 1% on yr 
--UltraTech Oct-Dec revenue from overseas INR 8.84 bln, up 35% on year 
--UltraTech Oct-Dec India grey cement sales realisation INR 4,970/tn 
--UltraTech Oct-Dec India grey cement sales realisation down 9.6% on year 
--UltraTech Oct-Dec ready mix concrete revenue INR 14.69 bln, up 14% on yr 
--UltraTech sees FY25 India grey cement capacity at 182.80 mtpa 
--UltraTech sees FY26 India grey cement capacity at 194.60 mtpa 
 

 

By Noopur Bhandiwad

 

MUMBAI – Ultratech Cement Ltd.'s consolidated net profit declined on year for the second consecutive quarter in Oct-Dec as the company's finance costs, depreciation and amortisation expenses saw an uptick. However, with the company's top line and bottom line beating the Street's estimates, shares closed Thursday's session 6.8% higher at INR 11,420.90 on the National Stock Exchange.

 

Ultratech Cement's consolidated net profit for the December quarter declined 17.3% on year to INR 14.70 billion, but were sharply higher than the analysts' estimate of INR 13.00 billion. Sequentially, net profit grew 79.2%, the highest growth rate in 19 quarters. The company generated a consolidated revenue of INR 171.93 billion, up 2.7% on year. Analysts had estimated the revenue for the quarter at INR 167.75 billion. 

 

Ultratech's total expenses for the quarter were INR 156.05 billion, up 7.4% on year. Of this, the company spent INR 39.80 billion on power and fuel expenses, down 4.7% on year. The company's freight and forwarding expenditures rose 5.3% on year to INR 38.11 billion. Its cost of materials consumed was INR 27.68 billion, 10.5% higher compared to the same quarter a year ago.

 

For the first nine months of the current financial year, the company's net profit was INR 39.86 billion, down 16.0% on year. Its revenues in Apr-Dec grew 0.8% on year to INR 508.98 billion.

 

The company's earnings before interest, taxes, depreciation, and amortisation for the quarter was INR 31.31 billion, down 8% from INR 33.95 billion a year ago. On a sequential basis, EBITDA surged 40% from INR 22.39 billion. Ultratech achieved capacity utilisation of 73% during the quarter, the company said in the press release. Its domestic sales volumes grew 10% year-on-year and its energy costs were down 13% on year and 4% on quarter, mainly due to a decline in fuel costs, it said. The company's EBITDA per tonne was INR 964, down 20.2% on year. 

 

The company's key products also registered year-on-year growth. The domestic sales volume of its grey cement business was 28.10 million tonnes, up 10.5% on year, according to the company's investor presentation. However, it posted an on-year fall of 0.1% in its grey cement sales to INR 139.69 billion. Realisation from the grey cement business declined 9.6% on year to INR 4,970 per tonne but improved 1.4% sequentially. Going forward, UltraTech sees the capacity of grey cement at 182.8 tonnes per annum for 2024-25 (Apr-Mar) and at 194.60 tonnes per annum for FY26.

 

The company's ready mix concrete segment's revenue was INR 14.69 billion, up 14% on year. Revenue from the white cement segment was down 1% on year to INR 6.41 billion. Its revenue from the overseas business rose 35% on year to INR 8.84 billion. 

With the acquisition of India Cements Ltd., UltraTech said its cement capacity has increased to 171.11 tonnes per annum on a consolidated basis. UltraTech Cement had announced in December that it acquired an additional 32.7% stake in India Cements. With this acquisition, its shareholding had increased to 55.49%. As a result, India Cements has become a subsidiary of UltraTech from Dec. 24. 

 

On the acquisition of Kesoram Cement, UltraTech said it was awaiting approval from Telangana and Karnataka for mine transfer. The financials of Kesoram Cement will be consolidated with UltraTech with retrospective effect from Apr. 1, UltraTech said. After completing its ongoing expansion projects and the acquisition of Kesoram Cement, UltraTech said it would achieve the unique milestone of more than 200 tonnes per annum cement capacity in the country by FY27.

 

Going forward, the company expects to generate a sustainable volume growth of 7-8% due to the government's focus on infrastructure and housing projects along with increased demand from urban and rural segments. End

 

Edited by Saji George Titus

 

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