On consolidated basis, the cement major reported a 6.99% decline in net profit to Rs 1,584 crore in Q1 FY23 as against Rs 1,703 crore recorded in Q1 FY22.
Net sales surged 28.29% to Rs 15,007 crore in quarter ended 30 June 2022 as against Rs 11,698 crore posted in the same quarter a year ago.
Profit before interest, depreciation and tax fell 8.77% to Rs 3,204 crore in Q1 FY23 as against Rs 3,512 crore in the corresponding quarter previous year. Profit before tax stood at Rs 2,293 in Q1 FY23, down 9.22% to Rs 2,526 crore recorded in Q1 FY22.
The cement maker said that after a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labour availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity.
The company achieved capacity utilisation of 83% in Q1 FY23 as against 73% during Q1 FY22. Domestic sales volume grew 19% on a year on year basis.
Commitment to reducing carbon emissions is one of the company's core beliefs. In line with its continuing endeavour towards enhancing environment conservation measures, the company commenced 18 MW of waste heat recovery system (WHRS) capacity during the quarter. With this, the company's total WHRS capacity stands augmented to 185 MW covering nearly 16% of its current power needs. This is expected to increase to 250 MW by the end of FY23.
The company's existing expansion program is on track and estimated to be completed by the end of FY23. Work on further capex announced during the quarter has already commenced and commercial production from these new capacities is expected to go on stream in a phased manner by FY25, the company stated.
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Upon completion of the latest round of expansion, the company's capacity will grow to 159.25 Million tonnes per annum (MTPA), reinforcing its position as the third largest cement company in the world, outside of China.
In its outlook Ultratech Cement said , "While headwinds arising out of rising cost pressure could put some pressure on the profitability of cement companies, the strong momentum in housing and given the governments thrust on infrastructure and industrial development, the cement industry in India is set to see an upswing in demand in FY23."
Meanwhile, the company's board has approved the reappointment of Kailash Chandra Jhanwar as managing director of the company for a further period of two years, with effect from 1 January 2023.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. A $7.1 billion building solutions company, UltraTech is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 119.95 MTPA.
Shares of UltraTech Cement were up 5.16% to Rs 6445 on the BSE.
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