India’s largest cement company with a market capitalization of 326,000 Crores is up 7% after announcing its Q3FY25 Results. The stock rallied as it beat street estimates, despite reporting a 14% decline in net profits YoY.
Q3FY25 Results
Ultratech Cement reported a 3% year-on-year increase in total revenue from 16,880.45 Cr in Q3FY24 to 17,437.62 in Q3FY25 and a 9.97% increase from 15,855.46 in Q2FY25.
Their Net profit, however, decreased by 20% YoY from 1774.78 Cr in Q2FY24 to 1473.51 in Q3FY25. On a quarterly basis, they saw an increase in Net profit by 78% from 825.18 Cr in Q2FY25 compared to the current quarter. EBITDA Margin decreased by 8% YoY and ROCE stood at 40%.
Operational Highlights:
The total number of manufacturing Plants increased from 270 to 348 YoY, Their plants are now established in 140 cities compared to 125 and Cement volume increased by 14% to 3.17Mn m3.
Sales volume of Grey Cement for Domestic markets grew by 10.5% YoY, Cement Exports by 41%, and White Cement by 6%. Overall the sales Volume for India saw a growth of 10.6%.
Capacity Expansion:
From the current Capacity of 182.8 (Mtpa) for Grey cement, the Company is working to increase its capacity to 209.3 (Mtpa) by FY27. South India to add the most capacity from the current 20.50 to 59.20 (Mtpa) by FY27.
Share Price Movement
The share of Ultratech cement opened flat at 10,690 compared to its previous close of 10,693, after the announcement of results at 2 PM the share rallied 7% and closed at Rs 11,406. The share has delivered a marginal return of 16% over the past year.
Recent Acquisition
UltraTech recently completed the acquisition of India Cements. The company now holds 17,19,55,887 equity shares of Rs.10 each which makes a 55.49% stake of the company. Effective 24th December 2024 India Cements became a subsidiary of Ultratech Cements.
The company also acquired a non-controlling financial stake in Star Cement Limited at a total cost of Rs. 776 Cr which accounts for 8.42% of Star Cement’s Equity share capital.
About the Company
UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. A building solutions powerhouse, UltraTech is the largest manufacturer of grey cement and ready mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is the third largest cement producer in the world, excluding China.
Written by Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
