1. Ultratech Cement’s Q3 profit rises, beats expectations

Ultratech Cement’s Q3 profit rises, beats expectations

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2 min read • Updated: January 19, 2024, 2:25 PM

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Summary

India's largest cement maker Ultratech Cement reported a 68% year-on-year rise in its net profit to ₹1,777 crore.

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Ultratech Cement posted its highest-ever quarterly profits

Shares of India’s largest cement maker are up 1% today.

This comes after the company reported a 68% year-on-year rise in its net profit to ₹1,777 crore. It is the company’s highest-ever quarterly profits, surpassing the street estimate of ₹1,714 crore. “Improved operational efficiencies, coupled with lower fuel and raw material costs resulted in improved EBITDA margins,” said the management.

In the same period, the revenue also increased around 8% to ₹16,487 crore. The domestic sales volume increased 5% year-on-year with the capacity utilisation at 77%.

In the December quarter, the cement maker acquired a 0.54 MTPA cement grinding asset of Burnpur Cement – located at Patratu in Jharkhand for ₹169.7 crores, marking its entry in Jharkhand.

The company also completed the first phase of capacity expansion, which was announced in December 2020. Work on the second phase of 22.6 MTPA – announced in June 2022 – is in full swing. The commissioning is expected to take place in the March quarter.

The management is confident about the sector’s future prospects. “Given the government's focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years,” said the management. It added that pre-election spending thrust on infrastructure will be the key demand driver in the current financial year.