Financial Results - Year Ended 31st March, 2023

UltraTech records 15% volume growth; 100 million metric tons of production, despatches and sales in FY23

Rs.crores

* Excludes extraordinary items being reversal of accumulated provision for tax and MAT credit availed amounting to ₹ 983 crores for three months ended 31st March, 2022 and ₹ 1,518 crores for year ended 31st March, 2022.

UltraTech Cement Limited today announced its financial results for the quarter and year ended 31st March, 2023.

FINANCIALS

Q4FY2022-23

Consolidated Net Sales at Rs. 18,436 crores recorded a growth of 19% vis-à-vis Rs. 15,557 crores in the corresponding period of the previous year. Profit before interest, depreciation and tax was Rs. 3,444 crores vis-à-vis Rs. 3,165 crores in the corresponding period of the previous year. Profit after tax was Rs. 1,666 crores compared to a normalised profit Rs. 1,478 crores (before one-time extraordinary gains) in the corresponding period of the previous year.

FY23

For the full year, Consolidated Net Sales jumped 21% to Rs. 62,338 crores from Rs. 51,708 last year. Profit before interest, depreciation and tax was Rs. 11,123 crores vis-à-vis Rs. 12,022 crores in the corresponding period of the previous year. Profit after tax was Rs. 5,064 crores compared to a normalised profit of Rs. 5,667 crores (before one-time extraordinary gains) in the corresponding period of the previous year.

OPERATIONS

UltraTech achieved the unique distinction of registering 100 million tons of production, dispatches and sales in FY23. This was backed by an effective capacity utilization of 95% during this quarter and 84% capacity utilization for the year.

The Company saw an increase in energy cost by 17% YoY and 4% lower QoQ. Prices of pet coke and coal increased 18% YoY. Raw material cost was up 9% YoY on account of increase in cost of fly ash, slag and gypsum etc.

DIVIDEND

The Board of Directors at their meeting held today have recommended a dividend of 380% at the rate of Rs. 38/- per equity share of face value of Rs.10/- per share, aggregating Rs.1097.01 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. During the year, the Company commissioned 12.4 mtpa additional capacity of grey cement. It has further commissioned a 2.2 mtpa brownfield cement capacity at Patliputra in April, 23.

Work on its next phase of growth of 22.6 mtpa has already commenced. Civil work is in full swing at most sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26.

Upon completion of these expansions, the Company’s capacity will grow to 160.45 mtpa, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far.

CORPORATE DEVELOPMENT

The Board of Directors approved a Scheme of Amalgamation of UltraTech Nathdwara Cement Limited (a wholly-owned subsidiary of the Company) and its wholly-owned subsidiaries viz. Swiss Merchandise Infrastructure Limited and Merit Plaza Limited with the Company. The Appointed Date of the Scheme is 1st April, 2023. The transaction is subject to the approval of shareholders and creditors, the National Company Law Tribunal, Mumbai and Kolkata and other approvals regulatory authorities as may be required.

SUSTAINABILITY

In line with its continuing endeavour towards enhancing environment conservation measures, the Company commenced 43 MW of WHRS capacity during the year. With this, the Company’s total WHRS capacity stands augmented to 210 MW covering ~ 15% of its current power needs. This is expected to increase to ~300 MW by the end of FY24, after completing the on-going expansions. UltraTech remains focused on accelerating the decarbonisation of its operations.

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. This is a significant improvement from its previous score of ‘B’ in FY21 and reflects the significant progress made by the Company in driving its decarbonisation agenda.

Thirteen limestone mines received 5-star ratings for 2021-22 from the Indian Bureau of Mines at the 75th anniversary celebrations of the Indian Bureau of Mines. These are the highest number of 5-star ratings awarded to any company in India across all sectors and is given to mines which performed best on parameters such as scientific, efficient, and sustainable mining, compliance of approved production, land resettlement and other social impacts.

GOING FORWARD

UltraTech’s capital and financial resources remain fully protected and its liquidity position is adequately covered. Most importantly, it continues to remain committed to all its business associates. Demand for cement across all sectors continues to remain strong which augur well for the Company.