Indiastockguru Team
Ultratech Cement stock price closed 1.93% lower today as the market leader reported muted numbers for September Quarter 2024. Revenue from operations was down 2.35% YoY to Rs 15,635 crore in Q2FY25 compared to Rs 16,012 crore, corresponding quarter previous year. The company reported consolidated sales volume of 27.84 million tonnes with marginal YoY growth of 4% in September quarter 2024. Domestic grey cement volumes which constitute 92% of total volumes grew 3% YoY in Q2FY25.
Lower revenue growth in Q2FY25 was mainly due to lower realisation which fell 8.4% YoY and 2.9% sequentially. Domestic grey cement realisation stood at Rs 4,901 per metric tonne in September Quarter 2024. Net Profit fell 36% YoY to Rs 825 crore in Q2FY25 against Rs 1,280 crore, same quarter previous year.
Volume growth was subdued in Q2FY25 as the company faced muted demand conditions on account of excessive rainfall in certain parts of the country and delays in governmental infrastructure projects. Housing segments in urban and rural regions of Delhi, Rajasthan and Madhya Pradesh were impacted by heavy rainfall. A number of infrastructure projects such as Dwaraka Expressway, RRTS, Ram Temple, Kanpur Metro and Unnao Lalganj Expressway are nearing completion. The company is facing challenges in the infrastructure segment due to delay in announcement of new projects by the government.
UltraTech achieved capacity utilization of 68% during September Quarter 2024. Energy costs were lower by 14% YoY, while raw material costs rose 1% YoY on account of an increase in the cost of flyash and slag. According to the management, after the completion of its ongoing expansion projects across India by FY27, and receipt of statutory approvals for the acquisitions of Kesoram Cement (10.75 mtpa) and India Cements (14.45 mtpa), UltraTech’s total cement capacity will surpass 200 metric tonne per annum (mtpa). UltraTech is the third largest cement manufacturer in the world, outside of China, with a consolidated grey cement capacity of 156.06 mtpa.
