UltraTech Cement net up 17% on strong realisation, India Cements turnaround
AI Summary
UltraTech Cement reported a 17% increase in net profit for the June quarter, reaching ₹2,604 crore, driven by improved sales and cost control. Revenue also rose by 16% to ₹24,648 crore, with domestic sales volumes up 13%. The company continues to strengthen its manufacturing capabilities and has made significant investments in renewable energy and new ventures.
UltraTech Cement, an Aditya Birla Group company, reported that its net profit in the June quarter was up 17 per cent at ₹2,604 crore against ₹2,221 crore in the same period last year on better realisation.
Revenue increased 16 per cent to ₹24,648 crore (₹21,275 crore). The profit was partly driven by the turnaround of India Cements, which recorded a net profit of ₹52 crore in the quarter under review against net loss of ₹183 crore logged in same quarter last year. The turnaround was driven by 18 per cent increase in sales volume, sharper cost control focus and enhanced market reach, said UltraTech Cement.
UltraTech domestic sales volumes jumped 13 per cent to 39 million tonnes while consolidated sales were up 12 per cent at 41 million tonnes. Capacity utilisation stood at 81 per cent on an installed capacity of 200 mtpa in India, it said.
EBITDA per tonne improved to ₹1,214 against ₹1,198 logged in the previous year same quarter, reflecting the company’s continuing focus on cost reduction. Sales realisation was up marginally at ₹5,218 per tonne (₹5,163).
UltraTech’s manufacturing platform continued to strengthen during the quarter, building on the significant milestone achieved in April when the company crossed 200 MTPA domestic grey cement capacity and 205 MTPA global capacity, including its international footprint. The company’s expansion programme remains anchored in a balanced combination of greenfield projects, brownfield expansions and debottlenecking opportunities.
The approach continues to enhance market reach, improve logistics efficiency and strengthen service reliability across regions, further consolidating UltraTech’s leadership position.
During Q1 FY27, the company deployed electric heavy-duty trucks for mining operations and clinker transportation. UltraTech commissioned 20 MW of Waste Heat Recovery System capacity during the quarter. Consequently, the company’s total installed WHRS capacity increased to 434 MW. Along with its renewable energy of 1.4 GW, the company achieved a green power mix of 47 per cent at the end of this quarter.
The company has invested ₹888 crore in the wires and cables venture and expects to commission the plant by end of this year. Earlier, UltraTech committed an investment of ₹1,800 crore in the new venture.
Original Article
Published on Hindu BusinessLine