UltraTech Cement Q1 Results: Profit Misses Estimates, Revenue Rises 2%
UltraTech Cement Ltd.'s consolidated net profit remained little changed in the first quarter of the current financial year, missing analysts' estimates.
The cement manufacturer's bottom line stood at Rs 1,695.22 crore in the quarter ended June, compared to Rs 1,690.22 crore clocked in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had a consensus estimate of Rs 1,820.2 crore.
UltraTech Q1 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 1.9% to Rs 18,070 crore versus Rs 17,737 crore (Bloomberg estimate: Rs 18,354 crore).
Ebitda down 0.3% to Rs 3,039.72 crore versus Rs 3,049.08 crore (Estimate: Rs 33,403.8 crore).
Margin at 16.8% versus 17.19% (Estimate: 18.5%).
Net profit up 0.3% to Rs 1,695 crore versus Rs 16,90.22 crore (Estimate: Rs 1,820.2 crore).
Volumes
UltraTech Cement's consolidated sales volumes were 7% higher on a year-on-year basis at 31.95 million tonnes.
Majority of the growth was from cement exports that grew 69%, while grey cement domestic sales saw a 6% uptick.
What Impacted Margins?
The margins of the cement player fell 36 basis points on an annual basis, compared to the 240 basis point expansion expected, as per Bloomberg consensus estimates.
Possible reasons for the fall in Ebitda could be lower sales realisations and lower Ebitda per tonne, which is a result of the weak pricing environment in the Indian cement industry.
While, the company's fuel costs saw a 17% year-on-year drop, its raw material costs saw a 1% uptick.
Sales Realisation And Ebitda Per Tonne
The company's sales realisation declined by 5.7% and 2.4% on an annual and sequential basis, respectively.
Operating Ebitda per million tonne stood Rs 69 lower at Rs 965.
Capacity
The total capacity of the company stood at 150 million metric tonnes per year as of Q1 FY25, versus 140.8 MTPA as of the end of FY24.
A total of 8.7 MTPA was added during the quarter and the company plans to add 7.5 MTPA in FY25. It aims to reach a capacity of 183.5 MTPA by FY27, which excludes the Kesoram capacity of 10.75 MTPA, which is currently awaiting regulatory approvals.
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