UltraTech Cement Q3: Net Profit Down 38 Per Cent To Rs 1,063 crore

According to the filing with the stock exchange, the company’s consolidated Net Sales were Rs. 15,299 crores vis-a-vis Rs. 12,710 crores over the corresponding period of the previous year

“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,” the company said in a release. ( Image Source :Getty )

UltraTech Cement Limited, an Aditya Birla Group company on Saturday announced its financial results for the quarter that ended December 31, 2022. UltraTech reported a consolidated net profit of Rs 1,062.58 crore, down 37.86 per cent from Rs 1,710.14 crore at the same time last year.

According to the filing with the stock exchange, the company’s consolidated Net Sales were Rs. 15,299 crores vis-a-vis Rs. 12,710 crores over the corresponding period of the previous year. Profit after tax was Rs.1,058 crores as compared to Rs.1, 173 crores in Q3 of FY22, resulting in subdued margins.

UltraTech Cement, operating revenue increased 19.53 per cent to Rs 15,520.93 crore from Rs 12,984.93 crore in the same period the previous year. 

The Aditya Birla Group company said that domestic grey cement sales increased by 12 per cent quarter over quarter and 13 per cent year over year (QoQ). Costs for energy and raw materials increased by 33 per cent and 13 per cent year over year while being unchanged sequentially. According to UltraTech’s capacity utilisation was 83 per cent in Q3 of FY22.

During the quarter, a total of 5.5 metric tonnes per year (mtpa) of new capacity were put into service by UltraTech. This includes a 1.9 million tonne per annum greenfield integrated cement plant in Pali, Rajasthan, a 1.8 million tonne per annum greenfield grinding unit in Dhule, Maharashtra, and a 1.8 million tonnes per annum brownfield second integrated unit in Dhar, Madhya Pradesh.

During the quarter, the third Birla White wall care putty facility, with a 4 lakh tonne annual capacity, was also put into operation in Nathdwara, Rajasthan. The other two plants are located in Katni, Madhya Pradesh, and Kharia, Rajasthan.

“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,” the company said in a release.

The Company also said it has commissioned 18 MW of waste heat recovery systems (WHRS) and 7 MW of solar power during the quarter. With these expansions, UltraTech's green energy share has gone up to 19.8 per cent which includes 208 MW of waste heat recovery systems (WHRS) and 325 MW of solar power.