UltraTech Cement Limited, an Aditya Birla Group company announced its financial results for the quarter ended 30th June, 2024.
Consolidated Net Sales stood at Rs.17,879 crores vis-à-vis Rs.17,519 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs. 3,205 crores compared to Rs. 3,223 crores. Profit after tax was Rs. 1,697 crores compared to Rs. 1,688 crores.
Domestic sales volume registered 6% growth y-o-y. Energy costs were lower by 17% yoy, mainly on account of reduced fuel prices. Raw material costs marginally rose by 1%, attributable to the increase in the cost of fly ash and slag
UltraTech Cement Middle East Investments Limited (“UCMEIL”), the Company’s wholly-owned subsidiary in U.A.E. acquired further 25% equity share capital of RAK White Cement Co. for White Cement & Construction Materials P.S.C., (“RAKWCT”), a company situated in Ras Al Khaimah, UAE, under a partial cash offer made in terms of the takeover rules in UAE.
Together with its existing shareholding, UCMEIL’s total shareholding in RAKWCT stands increased to 54.39% resulting in RAKWCT becoming a subsidiary of UCMEIL w.e.f 10th July, 2024.This acquisition of RAKWCT strengthens UltraTech’s position in the white cement business in India as well in GCC and African markets.
Commitment to reduce carbon emissions is one of the Company’s core beliefs. In line with its continuing endeavour towards enhancing environment conservation measures, UltraTech commenced 23 MW of WHRS capacity during the quarter. With this, the Company’s total WHRS capacity stands augmented to 301 MW. The share of green power (including WHRS and RE Power) in the Company’s power mix is 29.4%.
UltraTech’s expansion program is progressing as per schedule. After the successful commissioning of 13.3 mtpa capacity of grey cement during FY24, the Company has added further 8.7 mtpa capacity during the quarter, as -2.7 mtpa greenfield cement capacity at Karur, Tamil Nadu, 2.7 mtpa greenfield cement capacity at Kukurdih, Chhattisgarh, 1.8 mtpa brownfield cement capacity at Tadipatri, Andhra Pradesh, 1.1 mtpa grinding unit at Parli, Maharashtra (inorganic),0.4 mtpa through debottlenecking at Jharsuguda, Odisha,
Work on the remaining locations as part of second phase of 22.6 mtpa announced in June, 2022 is in full swing. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26. For the third phase of growth announced in October 2023, major orders to key technology suppliers have already been placed and civil work has also commenced at some locations.
With the ongoing expansions across locations and the proposed acquisition of the Cement Business of Kesoram Industries, UltraTech’s grey cement capacity will stand augmented to 199.6 mtpa, including its overseas capacity of 5.4 mtpa. UltraTech’s growth trajectory mirrors India’s growth story. Its scale will further enable the Company to service the growing demand for cement across the country.
