UltraTech Cement, an Aditya Birla Group company, said net profit in the September quarter was up 69 per cent at Rs 1,280 crore, as against Rs 759 crore logged in the same period last year, on the back of a higher sales volume and lower cost.

Income was up 15 per cent at Rs 16,179 crore (Rs 14,039 crore). Expenses increased 12 per cent to Rs 14,493 crore (Rs 12,934 crore).

Sales volumes jumped 16 per cent to 26.69 million tonnes. Sales realisation was flat at Rs 267 per 50 kg bag year-on-year.

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Cement demand maintained its positive momentum from all sectors, fuelled by government-led infrastructure, rural development and urban residential, it said.

UltraTech achieved capacity utilisation of 75 per cent during the quarter, on expanded capacity. Energy costs were lower by 10 per cent, while raw material costs increased 4 per cent on account of an increase in the cost of fly-ash and slag.

The company commissioned 5.5 mtpa capacity during this financial year, following a 12.4 mtpa capacity addition in FY23. Its total domestic grey cement manufacturing capacity stands at 132.45 mtpa.

It also commissioned 30 MW of Waste Heat Recovery System (WHRS) capacity during the quarter. Green power now contributes 22 per cent of the total power requirement, with 262 MW of WHRS and 429 MW of renewable energy.

Work on the second phase of growth of 22.6 mtpa is in full swing. As part of this project, another 1.8 mtpa of slag grinding capacity will be added, taking the total in phase-II to 24.4 mtpa. Commercial production from the new capacities is expected to go on stream in a phased manner by FY25.

Star Cement Co, a wholly-owned subsidiary, announced signing a co-operation agreement with Cemex UAE. The partnership aims to recycle concrete waste in the construction industry and improve the overall environmental impact of construction projects. Cemex will also provide low carbon by-products to Star Cement, helping it to reduce the carbon footprint of the built environment.

The company said a demand revival looks imminent, especially during the festive season and the January-March peak construction period. Demand will also be led by pre-election spending, continued government push on infrastructure development, and sustained real estate development.

Shares were up three per cent at Rs 8,515 on Thursday.