UltraTech Q3FY24 Earnings | Consolidated PAT surges 68% YoY to Rs.1777 Cr

UltraTech Cement Limited, an Aditya Birla Group company today announced its financial results for the quarter ended 31st December, 2023.

FINANCIALS

Consolidated Net Sales was Rs. 16,487 crores vis-à-vis Rs. 15,299 crores over the corresponding period of the previous year. Profit after tax was Rs 1,777 crores highest ever quarterly PAT as compared to Rs 1,058 crores in Q3FY23.

OPERATIONS

Domestic grey cement sales volume rose 5% YoY and 1% QoQ, respectively. Improved operational efficiencies, coupled with lower fuel and raw material costs resulted in improved EBITDA margins.

SUSTAINABILITY

The Company continues to lay high emphasis on ‘green mobility’ with the introduction of electric trucks on a pilot scale for transportation of clinker. The Company has also pledged to deploy 500 electric trucks and add 1000 CNG/LNG vehicles in its operations by June 2025 as part of the Government of India’s eFAST initiative.

24% of the Company’s power requirements are met through green power sources. During the quarter, the Company commissioned additional 26 MW of solar power taking its capacity to 455 MW in addition to Waste Heat Recovery Systems of 264 MW.

The Company is moving towards use of 85% green power by the end of 2030.

CAPEX

During the quarter, the Company acquired a 0.54 mtpa cement grinding asset of Burnpur Cement Limited, located at Patratu in Jharkhand for a consideration of Rs.169.79 crores, marking its entry in the state of Jharkhand.

The Company has successfully completed the first phase of capacity expansion announced in December 2020. Work on the second phase of 22.6 mtpa announced in June, 2022 is in full swing and will start commissioning during the current quarter itself, ahead of schedule.

For the 3rd phase of growth of 21.9 mtpa announced in October 2023, major orders to key technology suppliers have already been placed and civil work has commenced on a few locations.

Applications have been filed with the stock exchanges for the proposed acquisition of 10.75 mtpa cement assets of Kesoram Industries limited and the same will be consolidated with the Company upon receipt of all regulatory approvals.

Upon completion of these expansions/acquisition, the Company’s capacity will grow to 195.4 mtpa including its operations in the UAE, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far.