UltraTech AGM: KM Birla announces ambitious goal of 200 million ton production capacity

KM Birla says UltraTech Cement is working to build a "future-ready business" encompassing economic growth and its environment, social, and governance commitments.

UltraTech Cement chairman and industrialist Kumar Mangalam Birla believes that with the company now targeting an ambitious goal of achieving a production capacity of 200 million tons, it will reinforce its position as "one of the largest cement companies in the world."

In his speech at the 23rd Annual General Meeting (AGM) of UltraTech Cement on August 11, Birla added that work has already commenced on the next growth phase of 22.6 MTPA additional capacity. "Completion of all the capacity expansion projects currently underway will take your company’s cement production capacity to 160+ MTPA," he said.

Further, KM Birla also added that UltraTech Cement is working to build a "future-ready business" encompassing economic growth and its environment, social, and governance (ESG) commitments.

Speaking on the sustainability agenda, Birla also reiterated that Ultratech Cement invests in low-carbon practices beyond compliance requirements and is committed to net zero by 2050.

Birla's speech in the AGM comes weeks after the cement manufacturer reported its first quarterly results for the financial year 2023-2024.

UltraTech Cement had reported a net profit of Rs 1,690 crore for the April-June quarter, up 6.8 percent YoY (year-on-year) from Rs 1,582 crore reported in Q1FY23. Sequentially as well, the net profit was up by 1.19 percent from Rs 1,670 crore reported in Q4FY23.

Revenue from operations for the quarter grew 17 percent YoY at Rs 17,737.1 crore as compared to Rs 15,163 crore in Q1FY23, the subsidiary of the Aditya Birla Group said in an exchange filing. However, the revenue declined by 4.95 percent QoQ (quarter-on-quarter) against Rs 18,662 crore reported in Q4FY23.

The cement major reported a total consolidated sales volume of 29.96 million tonnes, showing a 20 percent increase YoY from 25.04 million tonnes reported in Q1FY23.

On the dividend front, Birla said that the board of directors have recommended a dividend of Rs 38 per equity share for the year ended March 31, 2023, which entails a cash outgo of Rs 1,097 crore. The recommended dividend is in line with the company’s dividend policy.