UltraTech Q1 Result: Net Profit Rises 7 Per Cent To Rs 1,668 Crore

Reporting growth of 20 per cent during Q1, UltraTech noted it as a reflection of its strong position in the domestic market.

UltraTech Cement expects demand for cement across sectors to remain strong on the grounds of higher infrastructure spending ahead of the general elections in 2024

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UltraTech Cement posted a 7 per cent increase in its net profit after tax on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Friday. The cement manufacturer logged a net profit of Rs 1,688 crore for the June quarter in the current financial year (FY24) against a net profit of Rs 1,584 crore in the first quarter of the previous fiscal year. 

The company clocked a 20 per cent growth in domestic sales volume and 11 per cent in overseas sales volume on a YoY basis, as reported by Bloomberg Prime. Its Birla White business logged a growth of 12 per cent in volume on a YoY basis.

UltraTech posted net sales of Rs. 17,519 crores for the current quarter against its Q1 net sales of Rs. 15,007 crores for FY23. Its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs 3,049.3 crore, up 1.5 per cent on a YoY basis. EBITDA is often used by companies as an alternative to net income to better understand their finances.

Reporting growth of 20 per cent during Q1, UltraTech noted it as a reflection of its strong position in the domestic market. It also said that India operations witnessed a 9 per cent rise in profit after tax. UltraTech reported its total grey cement manufacturing capacity at 131.25 million tonnes per annum (mtpa). 

After commissioning a capacity of 12.4 mtpa of grey cement in FY23, the company has commissioned 4.3 mtpa capacity till now for the current fiscal year. This includes 2.2 mtpa brownfield cement capacity at Patliputra and 0.8 mtpa at Neem ka Thana, Rajasthan, and 1.3 mtpa at Sonar Bangla, West Bengal so far, as reported by Business Standard.

While the energy cost for the company increased by 3 per cent on a YoY basis, it attributed the same to currency devaluation. It also reported a 6 per cent rise in the cost of raw materials, relating it to the higher costs of fly ash and slag. 

UltraTech noted a positive outlook and expected demand for cement across sectors to remain strong on the grounds of higher infrastructure spending ahead of the general elections in 2024. It further expressed its commitment to keep working towards reducing carbon emissions. It also recommended a dividend of Rs 38 per share, subject to its shareholders' approval.