Financial Results: Q1FY24
 

(Rs. in crores)
 

* The Company has opted for new tax regime from the financial year 2023-24, in terms of the provisions of Section 115BAA of Income tax Act, 1961. Provision for current and deferred tax expenses has been recognized accordingly.
 

UltraTech Cement Limited, an Aditya Birla Group company today announced its financial results for the quarter ended 30th June, 2023.
 

The Company continues to deliver strong growth quarter after quarter, achieving a 20% growth during the quarter. This was following up on a 23% growth during Q4FY23, reflecting its strong position in the domestic markets. Profit after tax also rose 9% for the India operations.
 

FINANCIALS

Consolidated Net Sales stood at Rs.17,519 crores vis-à-vis Rs.15,007 crores over the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs.3,223 crores compared to Rs.3,204 crores. Profit after tax was Rs.1,688 crores compared to Rs.1,584 crores.
 

OPERATIONS

The Company achieved capacity utilisation of 89% as against 83% during Q1FY23. Domestic sales volume registered 20% growth year-on-year.

The energy cost was higher by 3% YoY, primarily due to currency devaluation. Additionally, there was a 6% rise in raw material cost, mainly driven by the higher costs of fly ash and slag.
 

SUSTAINABILITY

UltraTech has been recognized as the top-ranking Company in Sustainability within the Infrastructure and Engineering sector by Sustain Labs Paris and BW Businessworld's India's Most Sustainable Companies list for 2022-2023. This is a recognition of the significant progress made by UltraTech in its key sustainability focus areas of decarbonisation, circular economy, energy transition, water conservation and biodiversity management. It is also a testament to the Company’s efforts in community development.
 

Reducing carbon emissions is a fundamental belief of the Company, and it remains committed to this goal.  As part of its ongoing commitment to environmental conservation, UltraTech has added 22MW of WHRS capacity during the quarter. With this, the Company’s total WHRS capacity stands augmented to 232MW. Furthermore, the share of green power in the Company’s power mix is ~22%.
 

CAPITAL EXPENDITURE

UltraTech’s expansion program is progressing as per schedule.  Following the successful commissioning of 12.4 mtpa capacity of grey cement in FY23, the Company has further commissioned 4.3 mtpa capacity so far in this financial year. These include: (i) 2.2 mtpa brownfield cement capacity at Patliputra in April, 2023; (ii) 0.8 mtpa brownfield cement capacity at Neem ka Thana, Rajasthan in May, 2023 and (iii) 1.3 mtpa brownfield cement capacity at Sonar Bangla, West Bengal in July 2023.

The Company’s total grey cement manufacturing capacity in India now stands at 131.25 mtpa.

Work on its next phase of growth of 22.6 mtpa is in full swing. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26.
 

GOING FORWARD

Demand for cement across all sectors continues to remain strong which is highly favorable for its performance. Higher infrastructure spending ahead of the general elections in 2024 is expected to further propel cement demand during this fiscal.