Informist, Monday, Apr 29, 2024

--UltraTech Jan-Mar consol net profit 22.58 bln rupees

--UltraTech Jan-Mar consol revenue 204.19 bln rupees

--UltraTech Jan-Mar consol net profit 22.58 bln rupees vs 16.66 bln

--UltraTech Jan-Mar consol revenue 204.19 bln rupees vs 186.62 bln

--UltraTech: Jan-Mar domestic grey cement volume up 11% YoY

--UltraTech: Jan-Mar domestic capacity utilisation at 98%

--UltraTech:Jan-Mar India grey cement sales 171.8 bln rupee, up 7% YoY

--UltraTech to pay 70 rupees/share dividend

--UltraTech: Jan-Mar premium product mix 23.9% of sales

--UltraTech: Jan-Mar India operating EBITDA 1,185 rupees/tn, up on yr

--UltraTech: Jan-Mar EBITDA at 42.50 bln rupees, up 23% on year

--UltraTech: India grey cement capacity at 140.8 mtpa as on Mar 31

--UltraTech: Jan-Mar consol sales volume 35.08 mln tn, up 11% on year

--UltraTech: Jan-Mar grey cement realisation 5,170 rupees/tn

--UltraTech: Jan-Mar grey cement realisation down 3.8% on year

--UltraTech: Jan-Mar grey cement logistics cost down 2% on year

--UltraTech: Jan-Mar grey cement fuel cost down 21% on year

--UltraTech: Jan-Mar grey cement raw material cost flat on year

--UltraTech: Jan-Mar petcoke consumption 36% vs 52% year ago

--UltraTech: Consol net debt as on Mar 31 at 27.79 bln rupees

--UltraTech: Jan-Mar consol operating EBITDA 1,173 rupees/tn

--UltraTech: Jan-Mar green power mix at 25.7%

--UltraTech: Jan-Mar lead distance at 400 km vs 413 km year ago

--UltraTech: See capex of 95 bln rupees in FY25

MUMBAI – UltraTech Cement Ltd, India's largest cement manufacturer, reported better-than-expected earnings for the quarter ended March, with strong volume growth and high capacity utilisation. While the company reported year-on-year growth in the key operational metric, earnings before interest, taxes, depreciation, and amortisation on a per-tn basis for its India operations, it dipped slightly sequentially, while realisations also declined both annually and sequentially.

The Aditya Birla group entity's consolidated net profit for Jan-Mar was 22.58 bln rupees, higher than the consensus estimate of 20.59 bln rupees. The bottomline was higher by 35.6% over the same figure last year, and was also higher by 27.1% over Oct-Dec. The consolidated revenue for the reporting quarter came in at 204.19 bln rupees, higher by 9.4% on year, and by 22% over the quarter ending Dec 31.

UltraTech reported domestic grey cement volumes of 33.22 mln tn for Jan-Mar, up 11% on year, while revenues from the domestic grey cement sales were 171.8 bln rupees, higher by 7% on-year. Capacity utilisation in India also remained high at 98%. The company's consolidated sales volumes for the quarter were 35.08 mln tn, up 11% on-year.

Of the company's sales volumes during Jan-Mar, premium products formed 23.9%, up 17% on year, it said in the investor presentation. During the quarter, the company commissioned total cement capacity of 7.8 mln tn per annum, taking its capacity in India to 140.8 mtpa as of Mar 31. Because of acquisitions, that capacity has since increased.

During Jan-Mar, the company's green power mix increased on year to 25.7%. Fuel costs decreased 21% on year, while the share of petroleum coke, or petcoke, decreased to 36% against 52% a year ago. Logistics costs also declined on year by 2%, while raw material costs were flat on year. The lead distance, crucial for cement makers to remain competitive, declined on year to 400 km during Jan-Mar.

The company's consolidated EBITDA for the quarter was at 42.50 bln rupees, up 23% on year, while the domestic operating EBITDA per tn was 1,185 rupees per tn, up 125 rupees on year, but lower by 23 rupees over Oct-Dec. The consolidated EBITDA per tn was 1,173 rupees per tn, higher over the 1,050 rupees reported a year ago.

Grey cement realisations during the quarter were 5,170 rupees per tn, lower by 3.8% on year and by 6% over Oct-Dec. Operating margin for the quarter was at 20%, against 18% in the year-ago period.

As on Mar 31, the company's consolidated net debt was 27.79 bln rupees, lower than the 55.41 bln rupees as on Dec 31.

UltraTech spent 91.87 bln rupees by way of capital expenditure in 2023-24 (Apr-Mar), and has guided for 95 bln rupees as capital expenditure in 2024-25. Of the guided capital expenditure, 70% has been classified as "growth" capital expenditure.

The company declared its earnings during market hours, with investors being enthused by UltraTech's results, causing the company's shares to rally on the National Stock Exchange, ultimately closing 2.7% up at 9,964.45 rupees. UltraTech announced a dividend of 70 rupees per share. End

Reported by Shiladitya Pandit

Edited by Aditya Sakorkar

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