Net sales grew 16.74% year on year (YoY) to Rs 17,519 crore in the quarter ended 30 June 2023.
Profit before interest, depreciation and tax (PBIDT) rose marginally to Rs 3,223 crore in Q1 FY24 as against Rs 3,204 crore in Q1 FY23. Profit before tax was at Rs 2,266.79 crore during the quarter, down 1.16% YoY.
Total expenses spiked 20.55% YoY to Rs 15,647.74 crore in Q1 FY24. Cost of raw material consumed was at Rs 2,559.55 crore (up 28.03% YoY) and power & fuel expense stood at Rs 4,881.20 crore (up 21.63% YoY).
The energy cost was higher by 3% YoY, primarily due to currency devaluation. Additionally, there was a 6% rise in raw material cost, mainly driven by the higher costs of fly ash and slag.
On operational front, the company achieved capacity utilisation of 89% as against 83% during Q1 FY23. The total consolidated sales volume for Q1 FY23 stood at 29.96 million tons, recording a growth of 20% YoY.
Domestic sales volume grew 20% to 29.01 million tons during the quarter, with capacity utilization of 89%.
The company has commissioned cement capacity of 4.3 MTPA in Q1 FY24, taking total grey cement capacity of the firm to 131.25 MTPA in India.
Ultratech's blended cement for the quarter was at 70%. Meanwhile, the clinker conversion ratio stood at 1.44.
On capex front, the cement major said that its expansion program is progressing as per schedule. During the year, the company commissioned 2.2 mtpa brownfield cement capacity at Patliputra in April 2023. It has also commissioned a 0.8 mtpa brownfield cement capacity at Neem ka Thana, Rajasthan in May 2023 and 1.3 mtpa brownfield cement capacity at Sonar Bangla, West Bengal in July 2023.
The company added that the work on its next phase of growth of 22.6 mtpa is in full swing. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26.
In its outlook UltraTech Cement said that demand for cement across all sectors continued to remain strong which is highly favorable for its performance. Higher infrastructure spending ahead of the general elections in 2024 is expected to further propel cement demand during this fiscal.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 136.65 mtpa.
Shares of UltraTech Cement declined 1.44% to Rs 8,105.30 on the BSE.
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