UltraTech Cement Q2 Results: Net profit declines 35.5% to ₹825 crore, revenue down 2.3%

In the same quarter year ago, India's largest cement manufacturer had reported a post-tax profit of ₹1,280.38 crore.

Revenue from operations also declined 2.3% to ₹15,634.73 crore in Q2 FY25, compared to ₹16,012.13 crore a year ago.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 21% to ₹2,019 crore in the quarter ended September 2024, compared to ₹2,550.9 crore in Q2 FY24. The margin also declined 300 basis points (bps) to 12.9%.

The net sales dropped 2.7% year-on-year (YoY) to ₹15,308 crore the quarter under reveiew.

According to the firm, due to the acquisition of an additional stake, increasing its shares to 54.79% in UAE-based Ras Al Khaimah Co. for White Cement & Construction Materials P.S.C. (RAKW), its results are not comparable to the year-ago period.

"Consequently, RAKW has become a subsidiary of UCMEIL with effect from 10/07/2024. The above results include the financial results for RAKW w.e.f. 10/07/2024 and hence the figures for the three months and six months ended 30/09/2024 are not comparable with the previous corresponding periods," it said.

UltraTech Cement Q2 Results: Shares down

Following the announcement, shares of UltraTech Cement declined 1% to ₹10,960 apiece on the NSE. The company's market capitalisation stands at ₹3,16,134.03 crore.

The stock was down 0.8% to ₹10,967.9 a unit on the BSE.

The cement maker, in an exchange filing, said that it achieved capacity utilisation of 68% in the latest quarter. Domestic sales volume rose 3% YoY on a consolidated basis, while energy costs were lower by 14% YoY.

"UltraTech successfully raised US$500 million through a sustainability-linked loan with participation from six banks. The transaction marks the second sustainability-linked financing, after the inaugural sustainability-linked bond issuance in 2021. This financing signifies the ongoing commitment to align the Company’s funding strategy with its sustainability and ESG goals," the company said.