UltraTech Cement Q2 profit reports consolidated net profit ₹825 crore

UltraTech Cement’s full income, which includes different income, was astatine ₹15,855.46 crore. File | Photo Credit: Special arrangement

“UltraTech Cement Limited connected Monday (October 21, 2024) reported a consolidated nett net of ₹825.18 crore for September 4th 2024-25. It had posted a nett net of ₹1,280.38 crore successful July-September FY24,” according to a regulatory filing from the Aditya Birla radical flagship firm.

Revenue from operations was astatine ₹15,634.73 crore successful the quarter. It was astatine ₹16,012.13 crore successful the corresponding play a twelvemonth ago. Total expenses were astatine ₹14,837.44 crore successful September 4th FY25.

According to UltraTech, its consolidated results are "not comparable" owed to the acquisition of an further stake, expanding its holding to 54.79% successful the UAE-based Ras Al Khaimah Co. for White Cement & Construction Materials PSC (RAKW).

“Consequently, RAKW has go a subsidiary of UCMEIL with effect from 10/07/2024. The supra results see the fiscal results for RAKW w.e.f. 10/07/2024 and hence the figures for the 3 months and six months ended 30109/2024 are not comparable with the erstwhile corresponding periods,” it said.

UltraTech Cement's full income, which includes different income, was astatine ₹15,855.46 crore. On standalone basis, UltraTech Cement's nett from the home marketplace was down 34.71% to ₹796.89 crore successful the September quarter.

Similarly, its gross from the home marketplace was down 3.68% to ₹14,905.23 crore successful the September 4th contempt an summation successful income volume. This was astatine ₹15,475.99 crore successful the 2nd 4th of FY 2023-24.

"UltraTech achieved capableness utilisation of 68% during the quarter," said an earning connection from the institution adding home income measurement of Grey Cement grew 3% YoY to 25.75 Million Tonnes (MT) contempt incessant rains passim the state this season.

Despite this growth, UltraTech's income "realisation declined 8.4% YoY and 2.9% qoq," arsenic the cement manufacture is facing a diminution successful prices.

During the quarter, "UltraTech's vigor costs were little by 14% YoY, portion earthy worldly costs roseate 1% connected relationship of an summation successful the outgo of flyash and slag." On a consolidated basis, UltraTech's income measurement was astatine 27.84 MT, which included 26.42 MT from India concern and 1.66 MT from overseas units. Its exports were astatine 0.22 MT and 0.45 MT from achromatic cement successful the September quarter.

UltraTech Cement, which is connected an enlargement drive, has added a capableness 9.9 MT of grey cement till October successful the existent fiscal, successful its full installed capableness which was astatine 146.2 MT by the extremity of FY24.

This excludes Kesoram’s Cement capableness of 10.75 MTPA and India's cement capableness of 14.45 MTPA, for which UltraTech is awaiting regulatory approvals.

UltraTech is expanding the capableness of its existing units and going for acquisitions arsenic it faces contention from billionaire Gautam Adani-led Ambuja Cements, which is besides pacing up capableness with acquisition and brownfield expansions.

"The capableness enlargement thrust is connected a standard that is globally unprecedented successful the cement sector. With the completion of the ongoing enlargement projects crossed India by FY27, and receipt of statutory approvals for the acquisitions of Kesoram Cement (10.75 MTPA) and The India Cements (14.45 MTPA), UltraTech’s full cement capableness volition surpass 200 MTPA," it said.

In July, UltraTech had announced acquisition of a 32.72 per cent involvement from promoters and their associates successful Tamil Nadu-based India Cements Ltd (ICL) for ₹3,954 crore. It had besides announced a ₹3,142 crore unfastened connection for acquiring 26 per cent share.

The Aditya Birla radical steadfast besides informed its enlargement programme is "progressing arsenic per schedule", which volition assistance trim operational costs and assistance it to leverage its beardown nationwide beingness and organisation network.

Over the outlook, UltraTech said its maturation trajectory aligns intimately with India’s broader maturation story.

"By expanding its scale, the institution volition conscionable the rising request for cement nationwide. Increase successful Government spending connected infrastructure assemblage and rising request from the municipality lodging assemblage is expected to make a sustainable measurement maturation of 7-8 per cent successful aboriginal years," it said.

Shares of UltraTech Cement were trading astatine ₹10,840 apiece connected BSE, down 2% from the erstwhile close.

Published - October 21, 2024 04:54 p.m. IST