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New Delhi, Jul 19 (PTI) UltraTech Cement Ltd on Friday reported a flat growth in consolidated net profit at Rs 1,696.59 crore for the June quarter on account of lower sales realization and a marginal increase in raw material prices.
The leading cement maker posted a consolidated net profit of Rs 1,688.45 crore in the year-ago period, the Aditya Birla group flagship firm said in a regulatory filing.
Its revenue from operations was up 1.87 per cent at Rs 18,069.56 crore during the period. It was at Rs 17,737.10 crore in the corresponding period a year ago.
During the quarter, UltraTech's consolidated volume sales were up 7 per cent to 31.95 million metric tonnes.
However, “sales realization declined 5.7 per cent” in the June quarter, UltraTech said in a post-earnings investor presentation.
In the June quarter, raw material prices — which is 15 per cent of the total cost — witnessed a 1 per cent increase on a year-on-year basis.
This was due to an “increase in the cost of fly ash and slag”, it said.
Though logistics cost, which is 30 per cent of the total cost, witnessed a “5 per cent decline year-on-year.” This was mainly due to a reduction of lead distance “to 385 km in Q1FY25 vs 409 km in Q1FY24,” it added.
Similarly, fuel, which accounts for 24 per cent of the total cost, witnessed a “17 per cent decline year-on-year” due to reduced prices.
UltraTech's power costs also had a “7 per cent decline” due to efficiency improvement and an increase in green power usage, which accounted to 29.4 per cent of the total consumption.
In the June quarter, UltraTech's total expenses were at Rs 16,128.37 crore, up 3.07 per cent.
UltraTech Cement's total income was at Rs 18,235.30 crore, up 1.81 per cent.
Over the capacity expansion, UltraTech said it is progressing as per schedule. The Aditya Birla group firm, which had added 13.3 MTPA capacity of gray cement in FY24, has added a further 8.7 MTPA capacity during the quarter.
“Work on the remaining locations as part of the second phase of 22.6 MTPA announced in June 2022 is in full swing. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26,” it said.
While for the third phase of growth announced in October 2023, major orders to key technology suppliers have already been placed and civil work has also commenced at some locations, it added.
“With the ongoing expansions across locations and the proposed acquisition of the Cement Business of Kesoram Industries, UltraTech's gray cement capacity will stand augmented to 199.6 MTPA, including its overseas capacity of 5.4 MTPA,” it added.
UltraTech is the third largest cement producer in the world, outside of China, with a total gray cement capacity of 154.86 MTPA.
Shares of UltraTech Cement Ltd on Friday settled at Rs 11,268.10 on the BSE, down 3.28 per cent from its previous close. PTI KRH TRB
