UltraTech Cement, reported a 38 per cent drop in quarterly earnings on Saturday, owing to an increase in expenditures.
Profit for the three months ended December decreased to Rs 1,062 crore (USD 131.2 million) from Rs 1,710 crore the previous year, according to an exchange report by UltraTech.
Consolidated revenue from operations was 15,520.93 crore in Q3FY23, up 19.53 per cent from 12,984.93 crore in the previous fiscal quarter. In addition, sales increased by 11.72 per cent from 13,892.69 crore in the previous quarter.
Notably, despite cost headwinds, UltraTech maintains operating profitability with high volume growth. During the quarter, EBITDA was 2,462 crore.
Domestic grey cement sales volume increased 13 per cent year on year and 12 per cent quarter on quarter in Q3FY23. Energy and raw material expenses increased by 33 per cent and 13 per cent, respectively, while remaining stable sequentially. Furthermore, the business achieved capacity utilisation of 83 per cent, up from 75 per cent in Q3FY22.
Ultratech installed 18 MW of WHRS and 7 MW of solar electricity during the third quarter. UltraTech’s green energy contribution has increased to 19.8 per cent as a result of these additions, which comprise 208 MW of WHRS and 325 MW of solar power.
During Q3FY23, the business added 5.5 mtpa of new capacity in grey cement, including a 1.9 mtpa greenfield integrated cement plant in Pali, Rajasthan, a 1.8 mtpa greenfield grinding unit in Dhule, Maharashtra, and a 1.8 mpta brownfield 2nd integrated facility in Dhar, Madhya Pradesh.
Furthermore, Ultratech stated in the grey cement area, “Work on the second phase of expansion, which was announced in Q1FY23, has already begun. The main plant orders have been placed, and civil construction has begun at the majority of the locations. Commercial production from these increased capabilities is planned to begin gradually in FY25.”
Following the completion of these additions, Ultratech estimates its capacity to increase to 159.25 mtpa, solidifying its position as the world’s third biggest cement firm outside of China and by far the largest in India.
In terms of white cement, Ultratech stated that the third Birla White wall care putty factory, with a capacity of 4 lac tpa, was commissioned during the quarter in Nathdwara, Rajasthan. The present two factories are located in Rajasthan at Kharia and Madhya Pradesh at Katni. UltraTech currently has a 13 lac tpa wall care putty capability, substantially increasing its market position.
UltraTech is perfectly positioned to serve the white cement and wall care putty markets in the nation, it said, citing its current white cement manufacturing capacity in India and its investment in Ras Al Khaimah Company for White Cement and Construction Material, UAE.
According to Ultratech, the cement sector is primed for considerable development in the next few years due to the government’s focus on infrastructure construction and the resulting increased demand for urban housing.