Net sales grew 15.73% year on year (YoY) to Rs 15,735 crore in the quarter ended 30 September 2023.

Profit before interest, depreciation and tax (PBIDT) stood at Rs 2,718 crore in Q2 FY24, registering a growth of 35.02% from Rs 2,013 crore recorded in the same period a year ago. Profit before tax was at Rs 1,689.74 crore in Q2 FY24, up 53.17% YoY.

Total expenses rose 12.05% YoY to Rs 14,493.01 crore during the quarter. Cost of raw material consumed was at Rs 2,348.47 crore (up 17.17% YoY), employee benefits expense came in at Rs 812.30 crore (up 17.52% YoY) and power & fuel expense stood at Rs 4,385.33 crore (up 2.08% YoY).

“Cement demand maintained its positive momentum during Q2 FY24 also. The company witnessed demand from all sectors, fuelled by government led infrastructure, rural development and urban residential demand,” the company stated in the press release.

On operational front, the total consolidated sales volume for Q2 FY24 stood at 26.69 million tons, recording a growth of 16% YoY. Domestic sales volume grew 15% to 25.66 million tons during the quarter.

The company achieved capacity utilisation of 75% during the quarter on expanded capacity. Energy cost was lower by 10% YoY, while raw material cost rose 4% on account of increase in cost of flyash and slag.

On capex front, the cement manufacturer's on-going expansion program is progressing as per schedule. 5.5 mtpa capacity has already been commissioned during this financial year following a 12.4 mtpa capacity addition during FY23. The company also commissioned 30 MW of WHRS capacity during the quarter. Green power now contributes 22% of the total power requirement with 262 MW of WHRS and 429 MW of renewable energy.

The company's total grey cement manufacturing capacity in India stood at 132.45 mtpa.

UltraTech Cement added that the work on the second phase of growth of 22.6 mtpa is in full swing. As part of this project, the company is adding another 1.8 mtpa of slag grinding capacity taking total of phase 2 to 24.4 mtpa. Commercial production from all these new capacities is expected to go on stream in a phased manner by FY25/FY26, said the firm.

In its outlook UltraTech Cement said that the demand revival is imminent, especially during the festive season and the January-March peak construction period. Demand will also be led by pre-election spending, continued government push on infrastructure development, and sustained real estate development. All of this augur well for the company.

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 137.85 mtpa.