Financial Results: Q3FY23

UltraTech holds its operating profits with strong volume growth despite cost pressures

(Rs. in crores)

*Excludes extraordinary items (i) Reversal of accumulated provision for tax amounting to Rs. 323.35 crores and (ii) accrued Minimum Alternate Tax Credit Entitlement of Rs. 211.86 crores

UltraTech Cement Limited, an Aditya Birla Group company today announced its financial results for the quarter ended 31st December, 2022.

FINANCIALS

Consolidated Net Sales was Rs. 15,299 crores vis-à-vis Rs. 12,710 crores over the corresponding period of the previous year. Profit after tax was Rs.1,058 crores as compared to Rs.1,173 crores in Q3FY22, resulting in subdued margins.

OPERATIONS

Domestic grey cement sales volume rose 13% YoY and 12% QoQ, respectively. Energy and raw material costs were up 33% and 13% YoY, while they remained flat on a sequential basis.

UltraTech achieved capacity utilisation of 83% as against 75% during Q3FY22.

SUSTAINABILITY

The Company commissioned 18 MW of WHRS and 7 MW of solar power during the quarter. With these expansions, UltraTech’s green energy share has gone up to 19.8% which includes 208 MW of WHRS and 325 MW of solar power.

Sustain Labs Paris’ (SLP) in partnership with BW Businessworld has ranked UltraTech No.1 in Sustainability in the Infrastructure and Engineering sector and #15 out of the top 200 Companies in India.

UltraTech has been recognised as a leader in ‘climate change’ by Carbon Disclosure Project (CDP), a global non-profit environmental organization, for its 2022 CDP disclosure. It received an ‘A-’ score for implementing best practices and taking concerted action on climate issues, securing a place in the Leadership category. UltraTech’s score of ‘A-’ in FY22 by CDP is a significant improvement from its previous score of ‘B’ in FY21. UltraTech’s score on ‘climate change’ by CDP has been consistently improving over the years reflecting the significant progress made by the Company in driving its decarbonisation agenda.

CAPEX

Grey cement

Under the first phase of capacity expansion announced in December 2020, UltraTech commissioned 5.5 mtpa new capacity during Q3FY23:

• 1.9 mtpa greenfield integrated cement plant at Pali Rajasthan. The Company along with its subsidiary now has 16.25 mtpa cement capacity in the state of Rajasthan spread over 5 separate plant locations.

   

• 1.8 mtpa greenfield grinding unit at Dhule, Maharashtra, taking the total capacity in Maharashtra to 19.45 mtpa;

   

• 1.8 mpta brownfield 2nd integrated unit at Dhar Madhya Pradesh, taking the total capacity in the state of Madhya Pradesh to 18mtpa.

   

Work on the second phase of growth of 22.6 mtpa announced during Q1FY23 has already commenced. Main plant orders have been placed and civil work started at most sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25.

Upon completion of these expansions, 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 and the largest in India by far.

White cement

The third Birla White wall care putty plant at Nathdwara, Rajasthan, with a capacity of 4 lac tpa was commissioned during the quarter. The existing two plants are situated at Kharia in Rajasthan and Katni in Madhya Pradesh. UltraTech now has a wall care putty capacity of 13 lac tpa, further strengthening its position in the markets. Along with its existing white cement manufacturing capacity in India and its investment in Ras Al Khaimah Company for White Cement and Construction Material, UAE, UltraTech is strategically positioned to cater to the white cement and wall care putty market in the country.

OUTLOOK

Given the government’s focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years.