UltraTech Cement reported its second quarter net profit at Rs 1,232 crore, a jump of 75% on-year. Revenue also jumped 20% to Rs 19,607 crore compared to Rs 16,294 crore in the same period last year.
The Aditya Birla Group company's domestic grey cement volumes grew by 6.8 percent on a consolidated basis to 31.58 million tonne per year (MTPA), driven by growth in infrastructure and real estate, even as some pockets were affected due to monsoons and lack of sand availability.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) on a consolidated basis was up by 45 percent year-on-year to Rs 3,268 crore, while sales realisation on a per tonne basis was higher by 4.5 percent over the same period to Rs 5,088, reflecting price growth after a weak 2024.
Except raw material costs, which increased by 5 percent in the July-September quarter, all other key cost components, namely logistics, fuel and power, declined for the reported period, with power costs declining due to an increased share in green power sources. The lead distance reduced to 366 kilometres during the quarter, compared to 370 kilometres for the April-June quarter.
Mega capex plans
The cement major also approved Rs 10,255 crore plan for capacity expansion. It will add 22.8 MTPA capacity in phases starting from FY28.
In a presentation detailing the expansion plan, UltraTech said that the company expects to have a cement capacity of 240.8 MTPA by March 2028, including 5.4 MTPA in capacity overseas, mainly in the United Arab Emirates. In the current phase of expansion, UltraTech expects to commission around 26.1 MTPA in capacity till March 2027, when capacity is expected to reach 218 MTPA.
Much of the capacity addition announced on Saturday is expected to be done under UltraTech, while incremental capacity addition- of around 0.6 MTPA- is planned under its subsidiary The India Cements Ltd. The company is focusing on the north and west markets for capacity addition, with earlier expansion projects centred around eastern and southern territories.
UltraTech noted in the presentation that the capacity addition is slated to be funded entirely through internal accruals, at a rate of $52 per tonne. In contrast, UltraTech's acquisition of India Cements' was done at a rate of $120 per tonne.
Commenting on the development, Kumar Mangalam Birla, Chairman, Aditya Birla Group
stated, “India is now a commanding force in the global cement landscape, and UltraTech stands at the helm as its foremost champion. This latest capacity expansion follows more than Rs.50,000 crores invested over the past five years, underscoring deep and sustained confidence in the Indian economy and the scale of its infrastructure ambitions. Capital, when deployed strategically, has a catalytic effect. It energises ecosystems, deepens industrial linkages, and creates durable employment".
He added, "With this investment, we are reinforcing momentum across core sectors and contributing meaningfully to the acceleration of India’s economic flywheel. As India enters a transformative era of infrastructure and economic development, UltraTech is well-positioned to meet the rising demand for cement and contribute meaningfully to the nation’s journey towards Viksit Bharat 2047.”
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