UltraTech Cement has recorded great figures with strong receipts and some sales growth in the fourth quarter of FY 2025. The company’s integrated revenue rose by 13 per cent to Rs 23,060 crore compared to a year ago and increased by more than 29 per cent on a quarterly basis.
Mixed receipts per tonne reached 8.7 per cent on an annual basis and 8.1 per cent on a quarterly basis to Rs 6,326 crore per tonne. The operational profit increased by 12.3 per cent on an annual basis and Rs 59.5 per cent to Rs 4,620 crore on a quarterly basis. The receipt of operational benefits per tonne was 8 per cent on an annual basis and 32.9 per cent on a quarterly basis to Rs 1,267 per tonne.
Although operational expenditure increased, it was compensated by strong receipts. The adjusted net profit increased by 9.6 percent (81.5 percent on a quarterly basis) to Rs 2,470 crore on an annual basis. The net profit margin declined to 10.7 percent while it was 11.1 percent in the fourth quarter.
The company has been largely successful in its current efforts to make the cost favorable. Her renewable energy capacity increased from 612 MW on an annual basis to 752 MW in FY 2025. The company has targeted to deliver it to 2.1 GW by FY 27, so that 30 percent of the total energy needs can be met. Invested in West Heat Recovery Systems (WHRS) and about Rs 1,000 crore has been invested in related projects.
Management is committed to improving operational benefits of over Rs 300 per tonne operation in the main operations of UltraTech and has succeeded in improvement of Rs 86 per tonne. For new acquisitions, India Cements has planned a target of Rs 500 per ton of operations by financial year 2026, Rs 800 per tonne by financial year 2027 and Rs 1,00 per ton of operational benefits by FY 2028. The profitable profit per ton of Kesoram can reach beyond Rs 1,000 per tonne by the fourth quarter of FY 2026.
Ultratech’s domestic gray cement capacity is 18.4 million tonnes annually and the management has predicted its growth at a rate of two points in FY 2026. After the acquisition, in the first quarter itself, India Cements came into a position to eliminate the loss in terms of operational benefits and for the first time its monthly sales crossed 1 million tonnes by March 2025. The cement section of Kesoram was included from March 2025 which led to a major improvement. India Cements and Kesoram aims to complete the complete operation and brand integration by FY 2027. UltraTech has almost completed the acquisition of the White Cement Putty Construction Plant, increasing its presence in the value -added construction material. Strong operating performances and acquisitions have ensured that the company remains a leading in the market. Integration of acquisitions continues. The net debt/operating profit remains comfortable at 1.16 times.
However, the evaluation of ultratech is significantly higher than the competitors. Investors need to monitor weakness in demand due to scorching heat or monsoon, or inflation of raw material in the stomach coke or the geopolitical movement that promotes weak economic conditions for domestic economy.
First Published – April 30, 2025 | 10:29 PM IST
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