UltraTech Cement Q1 Results: Profit, Revenue Rise Beating Estimates

UltraTech Cement Ltd.'s first quarter profit and revenue rose, beating analysts' estimates.

The cement producer's net profit grew 6.8% year-on-year to Rs 1,690 crore in the quarter ended June, according to an exchange filing on Friday. That compares with the Rs 1,615 crore consensus estimate of analysts tracked by Bloomberg.

UltraTech Cement Q1 FY24 (Consolidated, YoY)

• Revenue up 17% at Rs 17,737 crore, as against a Bloomberg estimate of Rs 17,118 crore.

• Ebitda down 1.5% at Rs 3,049 crore versus a Bloomberg estimate of Rs 2,940 crore.

• Margin declined 320 basis points to 17.2%. Analysts had forecast it at 17.2%.

• Net profit up 6.8% at Rs 1,690 crore, as against a Bloomberg estimate of Rs 1,615 crore.

Domestic sales volume rose 20% YoY to 29.96 million tonne, with capacity utilisation of 89%.

UltraTech's domestic grey cement revenue increased 17% YoY to Rs 15,247 crore on the back of robust volume, growing 20% YoY to 28.6 million tonne. Overseas segment revenue grew 13% to Rs 555 crore, with volume expanding 11% to 1.04 MMT.

UltraTech's Birla White business witnessed 18% YoY growth in revenue at Rs 590 crore, with volume increasing 12% YoY.

Margin fell by 320 basis points to 17.2% on account of lower realisations and higher energy and input costs. Although raw material prices have declined, majority of the benefits of lower costs are expected to kick in only by the second or third quarter of the current fiscal due an inventory lag.

Realisation for grey cement fell by 2.83% YoY to Rs 5,350 per tonne, weighed down by muted cement prices. Raw material cost increased by 6% YoY due to higher cost of inputs, including fly ash, slag and gypsum. Energy costs also increased 3% YoY to Rs 1,621 per tonne.

UltraTech commissioned a cement capacity of 3.0 MTPA, taking total grey cement capacity of the company to 129.95 MTPA in India. It expects this capacity to increase to 155.05 MT by financial year 2025 after completion of its Phase-2 expansion.

The company has recommended a dividend of Rs 38 per share, subject to the approval of shareholders.

Shares of UltraTech Cement closed 1.27% lower at Rs 8,119.2 apiece after the results were announced, as compared with a 1.17% decline in the NSE Nifty 50 at 2.20 p.m. The stock fell 1.85% intraday to hit a 52-week low of Rs 8,072 per share.