UltraTech Cement expects double-digit volume growth in FY25, industry volumes to grow 7-8%

UltraTech's CFO Atul Daga expects the company's cement demand to grow in double digits for FY25

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26 Aug, 2025 12:21

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India's largest cement manufacturer UltraTech Cement said during their post-earnings investor call that it expects cement volumes to grow by "double digits" for the ongoing financial year, even as the same for the industry is seen at seven-eight percent for the period.

The company's Chief Financial Officer, Atul Daga, said during the call that demand for the ongoing quarter is expected to be subdued owing to the monsoons. For the ongoing quarter, demand across the cement industry may grow by 3-3.5 percent year-on-year, Daga said.

During the April-June quarter, the Aditya Birla group company reported grey cement volumes in India of 30.29 million tonnes, representing a nine percent sequential decline, although it grew six percent year-on-year. April-June is generally considered to be strong sales months for the industry.

While the General Elections and the preceding Model Code of Conduct, which stretched for all but the last few weeks of the quarter, were dampeners in term of demand, extreme heat and unavailability of labour owing to it also worked against cement manufacturers for the reporting period.

In FY24, UltraTech Cement beat the industry in terms of volume growth, reporting a volume growth of 13 percent on-year to 112.23 million tonnes, while the overall sector's sales volumes grew in the range of 7-8 percent.

Cement manufacturers are considering FY25 to be a "six-month year" or even less, as the monsoon will be followed by the festive season in most parts of India, as well as assembly elections in key states like Maharashtra, Haryana, and Jharkhand.

For Apr-Jun, UltraTech reported a consolidated net profit of Rs 1,695 crore, flat on-year, and lower than the Rs 2,259 crore for Jan-Mar.

Consolidated net sales were reported at Rs 18,069 crore. While it was slightly higher than that of the same period last year, it declined on a sequential basis, from Rs 20,419 crore in Jan-Mar. While revenues were higher than Street estimates, net profit was lower.

UltraTech's shares closed 3.2% lower on the National Stock Exchange at Rs 11,272.50.