UltraTech Cement, one of India's top cement maker, clocked a 32.3 per cent fall in fourth-quarter (Q4) profit on Friday, dented by a surge in power cost and fuel expenses. The company’s profit for the three months ended March 31 came in at Rs 1,666 crore ($203.77 million) against Rs 2,461 crore a year ago. The numbers fell because of much higher tax outgo for the quarter against credit in the corresponding quarter last fiscal.
Revenue from operations came in at Rs 18,662.38 crore, up 18.36 percent from Rs 15,767.28 crore in the year-ago quarter, the company said in a regulatory filing.
UltraTech said it achieved 100 million tons of production, dispatches and sales in FY23. This was backed by an effective capacity utilisation of 95 per cent during this quarter and 84 per cent capacity utilisation for the year. Volume growth was 15 per cent.
UltraTech saw an increase in energy cost by 17 per cent YoY and 4 per cent lower QoQ. Prices of pet coke and coal increased 18 per cent YoY. Raw material cost was up 9 per cent YoY on account of increase in cost of fly ash, slag and gypsum etc.
The Board of Directors at their meeting held on Friday have recommended a dividend at the rate of Rs 38 per equity share.
UltraTech's expansion program is progressing as per schedule, it said in a release. During the year, the Company commissioned 12.4 mtpa (million tonne per annum) additional capacity of grey cement. It has further commissioned a 2.2 mtpa brownfield cement capacity at Patliputra in April 2023.
Work on its next phase of growth of 22.6 mtpa has already commenced, it said. Civil work is in full swing at most sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26. Upon completion of these expansions, the company's capacity will grow to 160.45 mtpa, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far.