On Wednesday the share price of the cement company rose by 0.7% to its intraday high of ₹10,043.20 per share from its previous close of ₹9,965.50 after the company incorporated the wholly-owned subsidiary for mining and manufacturing.
According to the exchange filing, UltraTech Cement Limited acquired a wholly-owned subsidiary, “Letein Valley Cement Limited,” on January 16, 2024, to mine limestone and other raw materials, as well as manufacture and sell cement.
Looking at their financials, the net revenue increased by 15% year over year, from ₹13,892.69 crore in Q2FY23 to ₹16,012.13 crore in Q2FY24. Their revenue fell by 9.7 % sequentially from ₹17,737.10 crore in Q1FY24 to the current levels.
In addition, the company’s net profit increased by 69 % year on year, from ₹758.70 crores in Q2 FY23 to ₹1,280.38 crores in Q2 FY24. Their quarterly profit decreased by 24 %, from ₹1,690.22 crore in Q1FY24 to the current level.
UltraTech Cement Limited is a large-cap company with a market capitalization of ₹2,56,000 crores. The share price of UltraTech Cement Limited has increased by 19% in the last six months and 33% in the year to date.
Furthermore, the company’s debt-to-equity ratio of 0.18 is low, return on equity (ROE) of 9.7%, a return on capital employed (ROCE) of 13%, and a net profit margin of 8%.
The promoters own 60% of the company, while foreign institutional investors own 16.6%, the general public owns 8%, and domestic institutional investors own 15.4%.
UltraTech Cement Limited is an India-based company that manufactures and sells cement and related products. It supplies Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Composite Cement (CC), and Ready-Mix Concrete (RMC).
Written by Sriram KV
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