UltraTech Cement on Thursday posted its second quarter profit at Rs 1,281.45 crore, up 69.6 per cent in comparison to Rs 755.73 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 16,012.13 crore, up 15.3 per cent as against Rs 13,892.69 crore during the second quarter of FY23. The company posted net sales of Rs 15,735 crore vis-a-vis Rs 13,596 crore over the corresponding period of the previous year.
While cement demand maintained its positive momentum during Q2FY24, the Company witnessed demand from all sectors, fuelled by government led infrastructure, rural development and urban residential demand, it said in a regulatory filing.
UltraTech Cement achieved capacity utilisation of 75 per cent during the quarter on expanded capacity. Further, it said that the energy cost was lower by 10 per cent YoY, while raw material cost rose 4 per cent on account of increase in cost of flyash and slag.
Capital Expenditure
UltraTec Cement said that its ongoing expansion program is progressing as per schedule and 5.5 mtpa capacity has already been commissioned during this financial year following a 12.4 mtpa capacity addition during FY23. The Company also commissioned 30 MW of WHRS capacity during the quarter. “Green power now contributes 22 per cent of the total power requirement with 262 MW of WHRS and 429 MW of renewable energy. The Company’s total grey cement manufacturing capacity in India now stands at 132.45 mtpa,” it said.
Work on the second phase of growth of 22.6 mtpa is in full swing. As part of this project, the company is adding another 1.8 mtpa of slag grinding capacity taking the total of phase 2 to 24.4 mtpa. Commercial production from all these new capacities is expected to go on stream in a phased manner by FY25/FY26.
Demand revival, UltraTech Cement said, is imminent, especially during the festive season and the January-March peak construction period. “Demand will also be led by pre-election spending, continued government push on infrastructure development, and sustained real estate development. All of this augurs well for the Company,” it added.