The net profit of UltraTech increased by 7% to Rs 1,668 crore in the first quarter.
The net profit of UltraTech increased by 7% to Rs 1,668 crore in the first quarter.
UltraTech attributed its 20% growth in the first quarter to its strong position in the home market.
On a year-on-year (YoY) basis, UltraTech Cement’s net profit after tax increased by 7% in its first quarter (Q1) earnings on Friday. The cement producer earned Rs 1,688 crore in net profit during the June quarter of the current fiscal year (FY24), compared to Rs 1,584 crore in the first quarter of the previous fiscal year.
According to Bloomberg Prime, the company increased domestic sales volume by 20% and abroad sales volume by 11% year on year. Volume in its Birla White business increased by 12% year on year.
UltraTech reported net sales of Rs. 17,519 crores for the current quarter, up from Rs. 15,007 crores in Q1 FY23. Its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs 3,049.3 crore, a 1.5% increase year on year. Companies frequently utilize EBITDA as an alternative to net income to better understand their finances.
UltraTech attributed its 20% growth in the first quarter to its strong position in the home market. It also stated that profit after tax for India operations increased by 9%. UltraTech’s total grey cement manufacturing capacity was stated to be 131.25 million tonnes per annum (mtpa).
After completing a 12.4 mtpa grey cement capacity in FY23, the company has completed 4.3 mtpa capacity for the current fiscal year. According to Business Standard, this comprises 2.2 mtpa brownfield cement capacity at Patliputra, 0.8 mtpa at Neem ka Thana in Rajasthan, and 1.3 mtpa at Sonar Bangla in West Bengal.
While the company’s energy costs climbed by 3% year on year, it ascribed the increase to currency depreciation. It also reported a 6% increase in raw material costs, owing to higher expenses for fly ash and slag.
UltraTech observed a favorable outlook and predicted that demand for cement across industries would continue robust due to increased infrastructure spending ahead of the 2024 general elections. It also stated its intention to continue trying to reduce carbon emissions. It also proposed a dividend of Rs 38 per share, subject to approval by its shareholders.
