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Informist, Monday, Jul. 21, 2025

 

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--UltraTech Apr-Jun consol net profit INR 22.26 bln 
--Analysts saw UltraTech Apr-Jun consol net profit at INR 21.76 bln 
--UltraTech Apr-Jun consol net profit INR 22.26 bln vs INR 14.95 bln yr ago 
--UltraTech Apr-Jun consol revenue INR 212.75 bln vs INR 188.19 bln year ago 
--UltraTech Apr-Jun consol operating margin 21% vs 16% year ago 
--UltraTech Apr-Jun consol EBITDA INR 45.91 bln vs INR 31.86 bln year ago 
--UltraTech Apr-Jun operating EBITDA/tn INR 1,198 vs INR 899 year ago 
--UltraTech Apr-Jun domestic grey cement volume 34.64 mln tn, up 8.7% on yr 
--UltraTech sees FY26 India grey cement capacity at 197.5 mtpa 
--UltraTech sees FY27 India grey cement capacity at 212.2 mtpa 
--UltraTech Apr-Jun consol sales volume 36.83 mln tn, up 9.7% on year 
--UltraTech Apr-Jun India grey cement sales realisation INR 5,165/tn 
--UltraTech Apr-Jun India grey cement sales realisation up 2.4% on year 
--UltraTech Apr-Jun India grey cement sales realisation up 2.2% on qtr 
--UltraTech Apr-Jun domestic grey cement revenue INR 178.6 bln, up 11.4% YoY 
--UltraTech Apr-Jun ready mix concrete revenue INR 18.26 bln, up 23% on yr 
--UltraTech Apr-Jun white cement revenue INR 5.70 bln, down 2.8% on year 
--UltraTech Apr-Jun revenue from overseas INR 9.41 bln, up 56.4% on year 
--UltraTech: Apr-Jun energy costs down 12% on year on fall in fuel prices 
--UltraTech: Apr-Jun raw material costs up 2% on year 
--UltraTech Apr-Jun grey cement fuel cost INR 871/tn, down 14% on year 
--UltraTech: Capex plan made for next 2 years to improve overall business 
--UltraTech Apr-Jun grey cement logistics cost INR 1,158/tn, down 4% on year 
--UltraTech Q1 grey cement capacity up 3.5 mtpa, total capacity 192.26 mtpa 
--UltraTech Apr-Jun grey cement raw material cost INR 628/tn, up 2% on year 
--UltraTech Apr-Jun grey cement power cost INR 356/tn, down 8% on year 
--UltraTech Apr-Jun grey cement logistics cost 31% of total expenditure

 

By Avishek Rakshit and Anshul Choudhary

 

KOLKATA/MUMBAI – Increased sales volume arising from consolidation of its acquisitions, backed by an improvement in sales of premium products, led India's largest cement maker, UltraTech Cement Ltd., to report a six-quarter-high consolidated profit growth and seven-quarter-high revenue growth for the June quarter.

 

UltraTech Cement, which has been on an acquisition spree of late, reported a consolidated net profit of INR 22.26 billion, better than analysts' expectations of INR 21.76 billion. Although the profit is up 49% on year, it is down 10% sequentially. The consolidated revenue for the quarter under review rose over 13% on year to INR 212.75 billion during the June quarter, but fell short of the Street's expectations of INR 213.37 billion and declined 7.8% on quarter.

 

The revenue growth was on the back of increased sales volume and higher prices of grey cement which rose 2.2% sequentially and by 2.4% on year. Sales volume during the June quarter rose 9.7% on year to 36.80 million tonnes aided by acquisitions, and domestic grey cement sales volume increased 8.7% on year to 34.64 million tonnes. In March 2024, UltraTech Cement had concluded the acquisition of Kesoram Cement Ltd., a wholly owned subsidiary of Kesoram Industries Ltd. having cement factories in Telangana and Karnataka, in an all-share deal. The assets of Kesoram Cement were fully consolidated with the company around the end of the financial year 2024-25 (Apr-Mar).

 

UltraTech Cement, which has an installed capacity of 192.3 million tonnes per annum, had also acquired majority stake in the 14.5-million-tonne capacity The India Cements Ltd., which became its subsidiary in December. Hence, the sales volume of these two companies got added to UltraTech Cement's total sales volume during the June quarter, pushing the sales volume higher.

 

According to a statement from UltraTech, energy cost, one of the primary overheads for cement manufacturers, was down 12% on year mainly on account of reduced fuel prices. This aided the profit. However, raw material costs rose marginally by 2%, the statement added.

 

During the quarter under review, the sale of premium products improved substantially, leading to an improvement in the company's top line as well as the operating earnings before interest, tax, depreciation, and amortisation. Excluding the contribution from India Cements, premium products in Apr-Jun accounted for 33.8% of the product mix, up 41% on year.

 

The operating EBITDA increased by INR 337 per tonne of cement sold on year to INR 1,248. Clinker conversion ratio, a key metric of production, increased to nearly 1.5 from 1.4 a year ago. The company's sales outlets also increased to 4,802 units contributing 21% of domestic grey cement sales volume.

 

Sales of grey cement increased 11.4% on year to INR 178.60 billion and the top line from readymix concrete increased 23% on year to INR 18.3 billion during the June quarter. The revenue from sales of building products increased 21% on year to INR 2.30 billion, and the company's overseas operations fetched it a revenue of INR 9.40 billion, up 56.4% on year. However, sales of white cement took a beating, where revenue declined 2.8% on year to INR 5.70 billion. The company's exports and revenue from residual operations decreased 4.7% on year to INR 1.30 billion.

 

As sales volumes increased, so did the company's average price realisations during the June quarter, aiding the top line in the process. The average price realisation rose 2.4% on year and 2.2% on quarter to INR 5,165 per tonne of sales, against INR 5,045 per tonne of sales during the June quarter of FY25.

 

At the same time, total production costs rose nearly 8% on year to a little over INR 184 billion, but the company was able to reduce costs on major overheads. Raw material costs went up 20.9% on year to INR 34.30 billion, or INR 628 per tonne, owing to higher clinker conversion rates, signifying an improvement in production volume. The purchase of stock-in-trade went up 30.1% to INR 5.40 billion and employee benefit expenses increased 24.8% on year to INR 9.70 billion. The increase in the latter is primarily on account of the consolidation of operations of India Cements and Kesoram Cement.

 

However, logistics costs, which is 31% of the total costs incurred by the company in the June quarter, decreased 4% on year to INR 1,158 per tonne of grey cement. The fuel cost for grey cement manufacturing also declined 14% on year to INR 871 per tonne, and power costs went down 8% on year to INR 356 per tonne. These factors combined to boost the company's consolidated EBITDA to INR 45.90 billion in the June quarter, against INR 31.70 billion a year ago, and to significantly improve the operating EBITDA to INR 1,198 per tonne from INR 899 a tonne in the June quarter of FY25.

 

GEOGRAPHICAL PERFORMANCE

In a presentation for investors submitted to the bourses, UltraTech Cement said positive traction across consumer segments was seen in east and south India. In the east, the housing and rural segment--the most important business vertical for cement--saw growth, while demand from the infrastructure segment was supported by projects like the Patna-Kolkata Expressway, Buxar-Bhagalpur Expressway, Kolkata and Patna metro expansion, and airport expansion in Kolkata and Bagdogra. However, growth in Odisha was hit by a delay in fund allocation for affordable housing projects, heavy rains, and floods in June, besides sand shortages.

 

The western region fared well for the company with only the housing segment seeing some slowdown, but the northern part of the country saw a considerable impact on cement demand. Only the commercial segment in the north saw some growth. Demand from segments like housing and infrastructure was hit by unseasonal rains, geopolitical tensions, and lack of any major infrastructure projects.

 

Performance in the central region was also subdued as labour shortages on account of harvest and the wedding season and low government fund allocation for affordable housing projects led to a slowdown in the housing segment. No major infrastructure projects were announced, which resulted in a slowdown in demand from that segment.

 

INDIA CEMENTS TURNAROUND

UltraTech Cement said it had successfully turned around the performance of the assets of India Cements which were previously under financial stress. Comprehensive efforts on multiple fronts have enabled India Cements to generate an earnings before interest, tax, depreciation, and amortisation of INR 920 million during the June quarter, compared to a loss of INR 90 million a year ago, the company said in its statement.

 

Through debottlenecking, an additional capacity of 300,000 tonnes has been released from the assets of India Cements in the lucrative northern region and a capital expenditure plan is being drawn up for investments over the next two years for improvement in all areas of operations to bring these assets on a par with UltraTech standards, it further said in the statement.

 

For the current financial year, UltraTech is targeting a domestic production capacity of 197.5 million tonnes. For FY27, it is targeting 212.2 million tonnes of domestic installed manufacturing capacity.

 

Shares of UltraTech Cement closed 0.6% higher at INR 12,577 on the National Stock Exchange Monday. The company released its quarterly results during market hours.  End

 

Edited by Ashish Shirke and Rajeev Pai

 

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