UltraTech Cement, an Aditya Birla Group company, said its net profit in the June quarter was up seven per cent at ₹1,690 crore against ₹1,582 crore recorded in same period last year on higher production.

Revenue increased 17 per cent to ₹17,519 crore, while it was down five per cent Q-o-Qr. Ebitda was flat Y-o-Y at ₹3,223 crore (₹3,204 crore), but was down six per cent Q-o-Q.

Cement realisation was down three per cent Y-o-Y at ₹267 (₹275) per 50 kg bag. Logistics costs increased to ₹1,264 a tonne (₹1,253) as railways levied busy season surcharge, which was partially mitigated by reducing the lead distance to 410 km from 429 km, said the company.

The company achieved capacity utilisation of 89 per cent in the June quarter as against 83 per cent in the same period last fiscal. It had commissioned 22 MW of Waste Heat Recovery System taking the total capacity to 232 MW accounting for green power mix to 22 per cent.

Domestic sales volume registered 20 per cent growth Y-o-Y. The energy cost was higher by three per cent, primarily due to currency devaluation. Moreover, there was a six per cent rise in raw material cost, mainly driven by the higher fly ash and slag cost.

Cement production

The company has added 12.4 mtpa of grey cement production capacity last fiscal and another 4.3 mtpa of capacity was commissioned in this financial year. With these addition the company’s total grey cement manufacturing capacity stands at 131.25 mtpa.

UltraTech Cement has started work on adding another 22.6 mtpa of capacity and will go on commercial production in a phased manner by FY25 and FY26.

The company expects higher infrastructure spending ahead of the general elections next year is expected to further propel cement demand in this fiscal.

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