UltraTech Financial Results

 UltraTech Cement Limited, a subsidiary of the Aditya Birla Group, has announced its financial results for the quarter ending December 31st, 2022. The company reported a consolidated net sales of Rs. 15,299 crores, an increase from Rs. 12,710 crores during the same period in the previous year. However, profit after tax was lower at Rs. 1,058 crores compared to Rs. 1,173 crores in Q3FY22, resulting in subdued margins.

Domestic grey cement sales volume saw a significant increase, rising 13% YoY and 12% QoQ. Energy and raw material costs were also up, with a 33% YoY increase and a 13% YoY increase, respectively, although they remained flat on a sequential basis. UltraTech achieved a capacity utilization of 83%, compared to 75% during Q3FY22.

The company has also announced the completion of the first phase of its capacity expansion, announced in December 2020. During Q3FY23, UltraTech commissioned 5.5 mtpa new capacity, including a 1.9 mtpa greenfield integrated cement plant in Pali, Rajasthan, taking the company's total capacity in the state to 16.25 mtpa spread across five different locations. The company also commissioned a 1.8 mtpa greenfield grinding unit in Dhule, Maharashtra and a 1.8 mpta brownfield 2nd integrated unit in Dhar, Madhya Pradesh, taking the company's total capacity in the state to 18 mtpa.

Work on the second phase of growth, announced in Q1FY23, has already begun, with main plant orders placed and civil work underway at most sites. The company expects commercial production from these new capacities to begin in a phased manner by FY25. Upon completion, the company's capacity will grow to 159.25 mtpa, solidifying its position as the third largest cement company in the world, outside of China and the largest in India by far.

In addition to cement, UltraTech also commissioned a third Birla White wall care putty plant in Nathdwara, Rajasthan, with a capacity of 4 lac tpa. The existing two plants are located in Kharia, Rajasthan and Katni, Madhya Pradesh. This expansion increases UltraTech's wall care putty capacity to 13 lac tpa, further strengthening its position in the market. Along with its existing white cement manufacturing capacity in India and its investment in a Ras Al Khaimah Company for White Cement and Construction Material in UAE, UltraTech is well-positioned to serve the white cement and wall care putty market in India.