Ultratech Expects More than 95 Percent Capacity Utilization in Q4
Capacity utilization at UltraTech Cement, could touch 95 percent to 100 percent in the March quarter. Company executives indicated in an earnings call with analysts. Despite flat cement prices, management said companies in the cement industry are focused on retaining market share. UltraTech Cement's revenue from operations, rose 19.53 percent to Rs 15,520.93 crore from Rs 12,984.93 crore in the corresponding quarter of the last year, the Aditya Birla Group company said on January 21. While the profit missed estimates, revenue was higher than expected. The net profit was seen at Rs 1,105.2 crore and consolidated revenue at Rs 15,191.5 crore. In the past few years, UltraTech’s capacity utilization in the January-to-March quarter has typically been 95 percent to 100 percent, said Atul Daga, Executive Director and Chief Financial Officer (CFO. A quick glance at past records shows that if the company breaches the 95 percent utilization mark in the March-22 ended quarter, it would be the first time since the second quarter of FY18. In the March-2021 ended quarter, the company reported a consolidated capacity utilization of 92 percent, the highest since the second quarter of FY18. Quarterly capacity utilization rates for the period prior to quarter two of FY18 were not readily available. For the quarter ended December 2022, UltraTech reported capacity utilization of 83 percent and double-digit volume growth of 13 percent, aided by growth in infrastructure and urban housing demand, the company said. UltraTech’s sectoral update on region-wise demand also shows volume growth across regions – north, central, east and west, with housing and infrastructure contributing to demand across regions, except central India. The company, in its investor presentation, cited delays in commencement of infrastructure projects in the central region.
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