UltraTech Cement, the country’s largest cement producer, reported a 17 percent YoY decline in consolidated net profit to Rs 1,470 crore for the third quarter of FY25. However, the result came in better than the market had expected as a Moneycontrol poll had estimated a sharper drop of 26 percent YoY to Rs 1,304 crore.
The consolidated revenue from operations of the company rose nearly 3% YoY to Rs 17,193 crore, higher than the estimated Rs 16,696 crore. Strong volume increases across segments and better price realisations drove revenue growth.
After the announcement, UltraTech Cement shares jumped 6% to trade at Rs 11,333 on the NSE, adding to their pre-results surge.
Consolidated earnings before interest, taxes, depreciation, and amortisation fell 8% YoY to Rs 3,131 crore. Operating EBITDA per tonne for domestic grey cement increased sequentially to Rs 964. Realisation per tonne for grey cement was down 9.6% YoY but up 1.4% sequentially at Rs 4,970.
It has also reported a 13% YoY growth in rural sales volume, driven by improved minimum support prices of crops and favorable monsoons. However, the price of cement remained subdued in most parts of the quarter with some increase seen in December because of competitive price pressures. UltraTech’s revenues from grey cement in the domestic markets declined marginally to Rs 13,969 crore in the third quarter despite record growth of 10.5% YoY in demand on the back of a buoyant market.
Grey cement prices were sequentially flat during both October and November due to the advent of festival related holidays and relentless unseasonal rains in central India. These resulted in subdued Cement demand from institutional customers like developers of road, housing etc. The product price rose marginal in December months by Rs 5-10 a bag to at Rs 350-400.
Performance Highlights
- Sales Growth: Domestic grey cement volumes grew 10.5% YoY to 28.1 million tonnes, supported by rural demand recovery and infrastructure spending. White cement and ReadyMix Concrete (RMC) volumes also saw YoY growth of 6% and 14%, respectively.
- Cost Efficiency: The company reduced logistics and fuel costs through shorter lead distances, higher operational efficiencies, and a rise in the use of green power, which increased to 33.4% in Q3FY25 from 24.1% in Q3FY24.
- Capacity Expansion: With the acquisition of India Cements Limited in December 2024, UltraTech added 14.45 million tonnes of grey cement capacity. Its total domestic capacity is expected to reach 209.3 million tonnes by FY27.
- Regional Performance: While housing and commercial sectors drove demand, some regions, particularly in the South, faced challenges due to extended monsoons and cyclones.
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Source: Moneycontrol
News Desk
