UltraTech Cement records consolidated net sales of INR164bn

UltraTech Cement Ltd (Aditya Birla Group) has released its financial results for the quarter ended 31 December 2023, reporting consolidated net sales of INR164,870m (US$1.983bn) compared with INR152,990m of the corresponding period of the previous year. Profit after tax was INR17770m, the highest-ever quarterly figure as compared to INR10580m in 3QFY22-23.

The domestic grey cement sales volume rose five per cent YoY and one per cent QoQ, respectively. Improved operational efficiencies, coupled with lower fuel and raw material costs resulted in improved EBITDA margins.

The company continues to emphasise on ‘green mobility’ with the pilot-scale introduction of electric trucks for transportation of clinker. The company has also pledged to deploy 500 electric trucks and add 1000 CNG/LNG vehicles in its operations by June 2025 as part of the Government of India’s eFAST initiative.

A total of 24 per cent of the company’s power requirements are met through green power sources. During the quarter, the company commissioned additional 2MW of solar power taking its capacity to 455MW in addition to waste heat recovery systems of 264MW. UltraTech is aiming to use of 85 per cent green power by the end of 2030.

During the quarter, the company acquired a 0.54Mta cement grinding asset of Burnpur Cement Ltd, located at Patratu in Jharkhand for a consideration of INR169,790m, marking its entry in the state of Jharkhand.

UltraTech has successfully completed the first phase of capacity expansion announced in December 2020. Work on the second phase of 22.6Mta announced in June 2022 is in full swing and will start commissioning during the current quarter itself, ahead of schedule.

For the third phase of growth of 21.9Mta announced in October 2023, major orders to key technology suppliers have already been placed and civil work has commenced on a few locations.

Applications have been filed with the stock exchanges for the proposed acquisition of 10.75Mta cement assets of Kesoram Industries limited and the same will be consolidated with the company upon receipt of all regulatory approvals.

Upon completion of these expansions/acquisition, UltraTech’s capacity will grow to 195.4Mta, including its operations in the UAE, reinforcing its position as the largest cement company in India by far.

Outlook
Given the government’s focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years.