Ongoing expansion programme sets clear path to 199.6 mtpa capacity

                                         Rs.crores

The Scheme of Amalgamation of UltraTech Nathdwara Cement Limited (“UNCL”) (a wholly-owned subsidiary of the Company) and its wholly-owned subsidiaries viz. Swiss Merchandise Infrastructure Limited (“Swiss”) and Merit Plaza Limited (“Merit”) is effective from 20^th April, 2024. The Appointed Date being 1^st April, 2023, previous year figures have been restated in accordance with the provisions of IndAS.

UltraTech Cement Limited today announced its financial results for the quarter and year ended 31^st March, 2024.

FINANCIALS

Q4FY2023-24

Consolidated Net Sales at Rs. 20,069 crores recorded a growth of 9% vis-à-vis   Rs. 18,436 crores in the corresponding period of the previous year. Profit before interest, depreciation and tax at Rs. 4,250 crores was up 23% compared to Rs. 3,444 crores in the corresponding period of the previous year. Profit after tax was Rs. 2,258 crores compared to a profit Rs. 1,666 crores in the corresponding period of the previous year, registering a rise of 36%.

FY24

For the full year, Consolidated Net Sales was up 12% at Rs. 69,810 crores from Rs. 62,338 crores last year. Profit before interest, depreciation and tax was Rs. 13,586 crores vis-à-vis Rs. 11,123 crores in the previous fiscal, recording a growth of 22%. Profit after tax was  Rs. 7,005 crores, a jump of 38% as compared to Rs. 5,064 crores in FY23.

OPERATIONS

UltraTech recorded volume growth of 13% during FY24, backed by 11% during Q4FY24 and achieved full year ebidta/mt of Rs.1,101.Coal and petcoke (fuel) prices witnessed a drop during FY24. 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

The Company continues to deliver strong cash flows. During FY24 the Company’s net debt increased only by Rs. 77 crores after spending over Rs. 9,400 crores on capex. Over the last five years UltraTech has delivered a 24% cagr growth in its earnings per share.

DIVIDEND

The Board of Directors at their meeting held today have recommended a dividend of 700% at the rate of Rs. 70/- per equity share of face value of Rs. 10/- per share, aggregating  Rs. 2,020.84 crores. In terms of the provisions of the Finance Act, 2020, the dividend shall be taxed in the hands of shareholders at applicable rates of tax and the Company shall withhold tax at source appropriately.

CAPEX

UltraTech’s expansion program is progressing as per schedule. Work on the second phase of 22.6 mtpa capacity announced in June, 2022, is under progress with capacities commissioned across several locations. For the 3^rd phase of growth announced in October 2023, major orders have already been placed to key technology suppliers and civil work has also commenced at some locations.During the 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.

UltraTech acquired a 0.54 mtpa cement grinding asset of Burnpur Cement Limited, located at Patratu in Jharkhand, marking its entry into the state of Jharkhand. It also entered into an agreement to purchase a grinding asset with an installed capacity of 1.1 mtpa in addition to a captive railway siding, at Parli, Maharashtra from The India Cements Limited. 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.

With the acquisition of the Parli grinding unit, the ongoing expansion of 36.2 mtpa across locations and the proposed acquisition of Kesoram Cement, UltraTech’s grey cement capacity will stand augmented to 199.6 mtpa, including its overseas capacity of 5.4 mtpa. These initiatives underscore UltraTech’s commitment towards a resilient and prosperous India, while ensuring that its growth is in tandem with the nation's development. As India’s leading cement and ready-mix-concrete company, UltraTech is well placed to support the country in its exciting growth journey ahead.

CORPORATE DEVELOPMENT

The Scheme of Amalgamation (“Scheme”) of UltraTech Nathdwara Cement Limited (“UNCL”) (a wholly-owned subsidiary of the Company) and its wholly-owned subsidiaries viz. Swiss Merchandise Infrastructure Limited (“Swiss”) and Merit Plaza Limited (“Merit”) with the Company was made effective from 20^th April, 2024. The Appointed Date of the Scheme is                        1^st April, 2023.

The Composite Scheme of Arrangement between Kesoram Industries Limited, the Company and their respective shareholders and creditors for the demerger of the Cement Business of Kesoram into the Company has been approved by the Competition Commission of India on 19^th March, 2024. The Scheme is, inter alia, subject to receipt of requisite approvals from statutory and regulatory authorities, including from the stock exchanges, the Securities and

Exchange Board of India (SEBI), the National Company Law Tribunals and the shareholders and creditors of the Company.

SUSTAINABILITY

23.6% of UltraTech’s power requirements are met through green power sources. During the quarter, the Company commissioned additional 156 MW of solar power taking its capacity to 612 MW in addition to Waste Heat Recovery Systems of 278 MW

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UltraTech completed a 100 MW solar energy project under the Group Captive scheme in the state of Rajasthan. This is the Company’s first project for sourcing power for its captive consumption from the inter-state transmission network. Power from this project will be available to the Units in Rajasthan, Gujarat, Himachal Pradesh, Tamil Nadu, Odisha among others. UltraTech remains focused on accelerating the transition of its operations towards green energy and this project is part of its stated commitment to increase green power mix to 85% by 2030. With this achievement, the Company reaffirms its dedication to innovation, sustainability, and the pursuit of a brighter, cleaner future for all.

GOING FORWARD

Demand for cement across all sectors continues to remain robust which augur well for the Company.