Q4 profit of UltraTech Cement goes up by 36% & secures revenue worth Rs.20,419

Prominent cement making brand UltraTech Cement has recorded a profit after tax (PAT) of Rs.2,258 crore for the January to March 2024 quarter compared to a profit of Rs.1,666 crore in the corresponding period of the previous year, the firm’s financial results showed on April 29. The 36% jump in profit beats CNBC-TV18 estimates poll projection of Rs.2,050 crore.

The revenue of UltraTech Cement stood at Rs.20,419 crore for the quarter under review also came in 2% higher than the poll estimates of Rs.19,975. In the same quarter of the previous fiscal, the firm had seen a revenue of Rs.18,662 crore.  

The taxes, depreciation, and amortization of Rs.4,114 crore for the fourth quarter of the fiscal, the firm's margin rose to 20.1%, with an EBITDA, or earnings before interest.

The Managerial Board of Directors of UltraTech Cement has proposed a dividend of 700%, amounting to Rs.70 per equity share with a face value of Rs.10 per share, totaling Rs.2,020.84 crore. The company stated in its exchange filing that, as per the regulations of the Finance Act, 2020, the dividend will be subject to taxation at the shareholders' hands at the relevant tax rates, and the Company will deduct tax at source accordingly.

The company has witnessed volume growth of 13% during FY24, backed by 11% during Q4FY24 and achieved full year EBITDA/mt of Rs.1, 101.

The cement making firm informed that, coal and petcoke (fuel) prices witnessed a drop during FY24.The company statement explained,“The Company's imported fuel consumption cost during Q4FY24 was 13% lower than Q4FY23 and it remained flat QoQ. Effective capacity utilization was 98% during the quarter and 85% for the full year.”

During the current year, UltraTech added 13.27 mtpa grey cement capacity across locations. It further commissioned greenfield cement capacities at Karur, Tamil Nadu and Kukurdih, Chhattisgarh of 2. 7 mtpa each, aggregating to 5.4 mtpa in April, 2024.

In the quarter, UltraTech has successfully acquired a cement grinding asset from Burnpur Cement Limited, which has a capacity of 0.54 mtpa. This asset is located in Patratu, Jharkhand, and marks UltraTech's entry into the state. Additionally, UltraTech has entered into an agreement to purchase another grinding asset with a capacity of 1.1 mtpa, along with a captive railway siding, in Parli, Maharashtra. This acquisition is from The India Cements Limited.

In a company statement, it said that  it is also working on a brownfield capacity expansion of 1.2 mtpa at the Parli grinding unit as well as expanding its grinding unit at Dhule, Maharashtra from 1.8 mtpa to 3.6 mtpa. The shares of UltraTech Cement Ltd ended at Rs.9,984.00, up by Rs.283.80, or 2.93% on the BSE.