UltraTech Cement Ltd.'s consolidated net profit fell in the third quarter of the current financial year, but managed to beat analysts' estimates.
UltraTech Cement Ltd.'s consolidated net profit fell in the third quarter of the current financial year, but managed to beat analysts' estimates.
The cement manufacturer's bottom line stood at Rs 1,470 crore in the quarter ended Dec. 31, 2024, 17% lower as compared to Rs 1,776.98 crore clocked in the year-ago period, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had a consensus estimate of Rs 1,324 crore.
UltraTech Q3 FY25 Results: Key Highlights (Consolidated, YoY)
Revenue up 2.7% to Rs 17,193.33 crore (Bloomberg estimate: Rs 17,130 crore).
Ebitda down 11% to Rs 2,887.09 crore (Estimate: Rs 2,798 crore).
Margin at 16.8% versus 19.4% (Estimate: 16.3%).
Net profit down 17% to Rs 1,470 crore (Estimate: Rs 1,324 crore).
Volume Growth
UltraTech Cement saw its domestic volumes rise 10% year-on-year and 9% quarter-on-quarter in the third quarter. This was at the upper band of the expectation of 6% to 10% annual growth in volumes.
The company's total sales volumes in India stood at 28.81 million tonnes per annum, and consolidates sales volume stood at 30.37 million tonnes per annum.
Going forward, the government’s focus on infrastructure and housing projects together with increased rural and urban demand, is expected to generate a sustainable volume growth of 7–8%, the company said.
Proof Of Better Cement Prices
While UltraTech Cement's realisations per tonne fell 9.6% year-on-year in the December quarter, the metric saw a 1.4% sequential uptick to Rs 4,970. This shows that the third quarter saw better cement pricing versus the previous one, indicating a gradual improvement in the pricing environment.
Better Ebitda Per Tonne
The company's domestic operating Ebitda per tonne stood at Rs 964, higher by Rs 232 as compared to the preceding quarter. This was due to better realisations and a fall in key costs. The company's logistics, fuel, and raw material costs fell 2%, 6% and 1% on a sequential basis.
Capacity Update
UltraTech Cement's December quarter update revealed that as part of its ongoing capacity expansion program, the company has commissioned an additional capacity 1.8 million tonnes per annum during the quarter.
As of Dec. 31, the company has added 25 MTPA of capacity during the financial year, and plans to add 6.3 MTPA of additional capacity by fiscal 2025-end. With the acquisition of India Cements Ltd., UltraTech’s cement capacity has increased to 171.11 MTPA, on a consolidated basis.
Upon completion of the ongoing expansion projects and the acquisition of 10.75 MTPA capacity of Kesoram Cement, UltraTech expects to achieve 200 MTPA capacity by the end of fiscal 2027.
Regarding the Kesoram Cement acquisition, the company updated that it is currently awaiting mines transfer approval from authorities in Telangana and Karnataka.
The company also added that post the completion of its acquisition in southern states, the company's south-based capacity will increase from 26.15 MTPA currently to 49.85 MTPA.
Shares of UltraTech Cement rose as much as 6.5% to Rs 11,392 apiece on the NSE after the results. As of 2:35 pm, the scrip was trading at around the same levels. In comparison, the benchmark Nifty 50 index advanced by 0.34%.
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