UltraTech Cement Reports Over 17% Decline in Q3 Profit, Reaching Rs 1,470 Crore
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Synopsis
UltraTech Cement revealed a significant decline in its consolidated net profit for Q3 FY25, reporting Rs 1,470 crore. Despite this, revenue grew by 3%, supported by increased sales volumes and enhanced pricing strategies. The company also indicated improved performance in domestic grey cement sales and a rise in green power utilization.
Key Takeaways
- UltraTech Cement's Q3 FY25 profit fell by 17% to Rs 1,470 crore.
- Revenue from operations rose by nearly 3% to Rs 17,193 crore.
- Domestic grey cement sales increased by 10.5% year-on-year.
- Green power usage rose to 33.4% in Q3 FY25.
- Future capacity is projected to reach 209.3 million tonnes by FY27.
New Delhi, Jan 23 (NationPress) Cement manufacturer UltraTech Cement disclosed a more than 17 percent drop in its consolidated net profit for Q3 FY25, amounting to Rs 1,470 crore, compared to Rs 1,774.78 crore during the same period last year.
In contrast, the firm’s consolidated revenue from operations saw a nearly 3 percent year-on-year increase totaling Rs 17,193 crore. This growth was attributed to enhanced sales volumes and improved price realizations across its various segments.
Post-announcement, UltraTech Cement’s share price surged by nearly 6 percent, reaching Rs 11,333 on the NSE, continuing its upward trend prior to the results.
The company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 8 percent year-on-year to Rs 3,131 crore.
Nonetheless, its operating EBITDA per tonne for domestic grey cement showed a sequential improvement to Rs 964. Although the realization per tonne for grey cement dropped 9.6 percent year-on-year, it experienced a slight quarter-on-quarter increase of 1.4 percent, reaching Rs 4,970.
The company reported a rise in cement sales volumes, with domestic grey cement sales climbing 10.5 percent year-on-year to 28.1 million tonnes, fueled by growing demand in rural regions and increased government infrastructure spending, as noted in its exchange filing. Additionally, the volumes of white cement and ReadyMix Concrete (RMC) rose by 6 percent and 14 percent, respectively.
UltraTech also reported reduced logistics and fuel expenses due to shorter delivery distances, enhanced efficiencies, and a greater reliance on green power. The utilization of green power increased to 33.4 percent in Q3 FY25, compared to 24.1 percent a year prior.
The recent acquisition of India Cements Limited, effective December 24, 2024, added 14.45 million tonnes to UltraTech’s grey cement capacity.
The total domestic grey cement capacity of the company is projected to reach 209.3 million tonnes by FY27.
