UltraTech Cement Q2 results: Revenue increases by 15% as profit soars by 70% to Rs 1,281 crore

19 Oct 2023 , 05:09 PM

For the fiscal year 2023–24 (FY24), UltraTech Cement Ltd. reported a 69.5% increase in second-quarter (Q2 FY24) profits on Thursday. For the quarter that ended on September 30, 2023, the company recorded a consolidated net profit of Rs 1,281 crore, while revenue increased by 15.3% to Rs 16,012 crore.

The business reported a strong 16% increase in volume for the September quarter. ‘The demand for cement kept growing in the second quarter of FY24 as well. According to the report, a need was seen in all areas, driven by the need for urban housing, rural growth, and government-sponsored infrastructure.

Compared to the same period last year, when consolidated net sales were Rs 13,596 crore, they were Rs 15,735 crore this quarter. In contrast to Rs 2,013 crore, the profit before interest, depreciation, and tax was Rs 2,718 crore.

However, the company’s costs increased by 12%, primarily due to increases in the cost of commodities used as well as freight and forwarding charges.

According to UltraTech, it utilized 75% of its increased capacity throughout the quarter. Year-over-year (YoY), energy costs decreased by 10%, but raw material costs increased by 4% due to rising fly ash and slag prices.

The company’s ongoing expansion plan is moving forward according to plan. This fiscal year, 5.5 mtpa of capacity has already been put into service, after 12.4 mtpa of capacity was added during FY23. During the quarter, 30 MW of WHRS capacity was also put into service. With 429 MW of renewable energy and 262 MW of WHRS, green power currently provides 22% of the required power.

It also stated that India’s current total manufacturing capacity for grey cement is 132.45 million metric tonnes per year.

UltraTech Cement’s shares went up 2.69% to Rs 8,503.10 today.

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