UltraTech Cement Ltd posts consolidated net sales of INR152,990m in 3QFY22

UltraTech Cement Ltd (Aditya Birla Group) has announced its financial results for the quarter ended 31 December 2022. Consolidated net sales totalled INR152,990m (US$1.88bn) compared to INR127,100m over the corresponding period of the previous year. Profit after tax was INR10,580m as compared to INR11,730m in the 3QFY21-22, resulting in subdued margins.  

Domestic grey cement sales volume rose 13 and 12 per cent QoQ, respectively. Energy and raw material costs were up 33 and 13 per cent YoY, while they remained flat on a sequential basis. UltraTech achieved capacity utilisation of 83 per cent as against 75 per cent during Q3FY21-22. 

Under the first phase of capacity expansion announced in December 2020, UltraTech commissioned 5.5Mta new capacity during the 3QFY22-23. In Pali, Rajasthan, a 1.9Mta greenfield cement plant entered service. The company, along with its subsidiary, now has 16.25Mta cement capacity in the state of Rajasthan, spread over five separate plant locations. A further 1.8Mta greenfield grinding was set up in Dhule, Maharashtra, taking the total capacity in Maharashtra to 19.45Mta. In addition, 1.8Mta of brownfield capacity for the second integrated unit at Dhar Madhya Pradesh was commissioned, taking the company’s total capacity in Madhya Pradesh to 18Mta. 

Work on the second phase of growth of 22.6Mta announced during the 1QFY22-23 has already commenced. Main plant orders have been placed and civil work started at most sites. Commercial production from these new capacities is expected to go on-stream in a phased manner by FY24-25. Upon completion of these expansions, the company’s capacity will grow to 159.25Mta.

The third Birla White wall care putty plant at Nathdwara, Rajasthan, with a capacity of 400,000tpa was commissioned during the quarter. The existing two plants are situated at Kharia in Rajasthan and Katni in Madhya Pradesh. UltraTech now has a wall care putty capacity of 1.3Mta.

The company commissioned 18MW of WHRS and 7MW of solar power during the quarter. With these expansions, the share of green energy n UltraTech’s energy mix has increased to 19.8 per cent, which includes 208MW of waste heat recovery capacity and 325MW of solar power.