Ultratech Cement's Q3 net profit falls 38% to Rs 1,062 cr, revenue up 19.5%

Ultratech Cement, the country's largest cement maker, on Saturday reported a consolidated net profit of Rs 1,062.58 crore for the December quarter (Q3) of the ongoing financial year, down nearly 38 per cent from Rs 1,710.14 crore in the year-ago period.

Revenue from operations, however, rose 19.53 per cent to Rs 15,520.93 crore from Rs 12,984.93 crore in the corresponding period a year ago, its results showed.

While net profit missed Bloomberg consensus estimate of Rs 1,092 crore, revenue came in higher than analysts’ expectations of Rs 15,197 crore for the quarter under review. Sequentially, net profit rose 40 per cent, while revenue was up nearly 12 per cent, its results showed. 

The company's earnings before interest tax depreciation and amortisation (Ebitda) came in at Rs 2,462 crore in Q3 versus a Bloomberg consensus estimate of Rs 2,324.4 crore. Ebitda in the year-ago period stood at Rs 2,490 crore. Ebitda margin at 15 per cent compares favourably with analysts’ expectations of 15.3 per cent. But it is lower than the year-ago period, when Ebitda margin was 19 per cent, analysts said.

The company said that input cost pressures in Q3 had risen, with energy and raw material costs moving up 33 per cent and 13 per cent each versus a year ago. Though sequentially, these costs were flat, it said.

The Aditya Birla Group flagship company said its domestic grey cement sales volume rose 13 per cent year on year (YoY) and 12 per cent quarter on quarter (QoQ).

UltraTech achieved capacity utilisation of 83 per cent as against 75 per cent during Q3FY22, it said.

During the quarter, Ultra Tech commissioned a total of 5.5 metric tonne per annum (mtpa) of new capacity. This included 1.9 mtpa greenfield integrated cement plant at Pali in Rajasthan, 1.8 mtpa greenfield grinding unit in Maharashtra's Dhule and 1.8 mpta brownfield second integrated unit in Dhar in Madhya Pradesh.

The third Birla White wall care putty plant at Nathdwara in Rajasthan, with a capacity of 4 lakh tonne per annum, was commissioned during the quarter as well, it said. The other two plants for putty are at Kharia in Rajasthan and Katni in Madhya Pradesh.

“Given the government's focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years,” the company said.