UltraTech Cement, an Aditya Birla Group company, has reported 68 per cent increase in December quarter net profit at ₹1,777 crore, against the ₹1,058 crore logged in same period last year, on the back of higher volume and lower cost.
Revenue was up 8 per cent at ₹16,740 crore (₹15,521 crore). Overall income increased to ₹16,880 crore (₹15,648 crore). Sales volume was up 6 per cent at 27.32 million tonnes.
Despite higher output, expenses jumped 3 per cent to ₹14,531 crore (₹14,124 crore), on the back of a 14 per cent fall in power and fuel cost to ₹4,178 crore (₹4,873 crore). Ebitda was up 38 per cent at ₹3,395 crore (₹2,462 crore). Sales realisation increased to ₹275 (₹269) per 50 kg bag.
Expansion projects
In the quarter under review, the company acquired a 0.54 mtpa cement-grinding asset of Burnpur Cement in Jharkhand for ₹170 crore, marking its entry in the State. The company has started work on second phase of 22.6 mtpa expansion and will be commissioned ahead of schedule in March quarter, said UltraTech Cement.
It has placed major orders with key technology suppliers for third phase of growth of 21.9 mtpa and civil work has commenced on a few locations, it added. Applications have been filed with the stock exchanges for the proposed acquisition of 10.75 mtpa cement assets of Kesoram Industries, and it will be consolidated with the company after regulatory approvals.
Upon completion of these expansions and acquisition, the company’s capacity will grow to 195.4 mtpa, including its operations in the UAE. The company expects cement demand to grow on back of growing demand in urban regions and government spending on infrastructure projects.
The company has introduced electric trucks on a pilot scale for transportation of clinker. It plans to deploy 500 electric trucks and add 1000 CNG/LNG vehicles by June 2025 as part of the Government’s eFAST initiative.
Currently, 24 per cent of the company’s power requirements are met through green power sources and commissioned additional 26 MW of solar power taking its capacity to 455 MW in addition to Waste Heat Recovery Systems of 264 MW during the quarter under review. The company has set a target to use 85 per cent green power by 2030-end.