Financial Results: Q1FY23

(Rs. in crores)

22nd July, 2022: UltraTech Cement Limited, an Aditya Birla Group company today announced its financial results for the quarter ended 30th June, 2022.

FINANCIALS

After a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labour availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity.

Consolidated Net Sales was Rs. 15,007 crores vis-à-vis Rs. 11,698 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs. 3,204 crores compared to Rs. 3,512 crores. Profit before tax was Rs. 2,293 crores and Profit after tax was Rs. 1,584 crores compared to Rs. 2,526 crores and Rs. 1,703 crores, respectively.

OPERATIONS

The Company achieved capacity utilisation of 83% as against 73% during Q1FY22. Domestic sales volume grew 19% on a year-on-year basis.

SUSTAINABILITY

Commitment to reducing carbon emissions is one of the Company’s core beliefs. In line with its continuing endeavour towards enhancing environment conservation measures, the Company commenced 18 MW of WHRS capacity during the quarter. With this, the Company’s total WHRS capacity stands augmented to 185 MW covering nearly ~16% of its current power needs. This is expected to increase to 250 MW by the end of FY23.

CAPITAL EXPENDITURE

The Company’s existing expansion program is on track and estimated to be completed by the end of FY23. Work on further capex announced during the quarter has already commenced and commercial production from these new capacities is expected to go on stream in a phased manner by FY25.

Upon completion of the latest round of expansion, the Company’s capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China.

GOING FORWARD

While headwinds arising out of rising cost pressure could put some pressure on the profitability of cement companies, the strong momentum in housing and given the governments thrust on infrastructure and industrial development, the cement industry in India is set to see an upswing in demand in FY23.