On Thursday, UltraTech Cement Ltd reported a robust 69.5% increase in profit for the second quarter of the financial year 2023-24 (Q2 FY24). The company disclosed a consolidated net profit of Rs 1,281 crore for the period ending on September 30, 2023, with a 15.3% surge in revenue, reaching Rs 16,012 crore.
The company attributed this success to a significant volume growth of 16% during the September quarter, driven by strong demand from various sectors. The government-led infrastructure projects, rural development initiatives, and urban residential demands all contributed to the sustained positive momentum in cement demand during Q2 FY24.
In comparison to the corresponding period in the previous year, the company’s consolidated net sales rose to Rs 15,735 crore from Rs 13,596 crore. Additionally, the profit before interest, depreciation, and taxes reached Rs 2,718 crore, up from Rs 2,013 crore.
However, the company did face a 12% increase in costs, primarily due to higher expenses related to materials and freight. Despite this, UltraTech reported a capacity utilization rate of 75% during the quarter, benefiting from expanded capacity. Energy costs decreased by 10% year-on-year, while raw material costs increased by 4%, primarily due to rising fly ash and slag prices.
UltraTech’s ongoing expansion plan remained on track, with 5.5 million metric tons per annum (mtpa) of capacity commissioned during the current financial year, in addition to the 12.4 mtpa capacity added in FY23. The company also commissioned 30 MW of Waste Heat Recovery System (WHRS) capacity during the quarter, contributing to a total of 262 MW of WHRS and 429 MW of renewable energy, accounting for 22% of the total power requirement.
With this expansion, UltraTech’s total grey cement manufacturing capacity in India now stands at 132.45 mtpa.
On Thursday, UltraTech’s shares on the NSE closed at Rs. 8,514.65, marking a 2.86% increase.