UltraTech Cement Ltd announced its financial results for the third quarter of FY25, reporting a 17.3% year-on-year decline in consolidated net profit. For the period ending December 2024, the company’s profit stood at Rs 1,469.5 crore, compared to Rs 1,776.98 crore in the same quarter last year.
Despite the profit drop, the company’s revenue from operations increased by 2.7%, reaching Rs 17,193.33 crore from Rs 16,739.97 crore in Q3 FY24. Key growth areas included cement exports, ready-mix concrete (RMC), building products, and overseas markets, which saw increases of 37%, 14%, 26%, and 35% respectively.
In a major corporate move, UltraTech Cement successfully acquired a 32.72% stake in The India Cements Limited (ICEM) after receiving approval from the Competition Commission of India. With this acquisition, UltraTech now holds a total of 55.49% of ICEM’s equity share capital, making it a subsidiary as of December 24, 2024. Additionally, UltraTech launched an open offer to acquire up to 26% more of ICEM’s shares, with the offer period closing on January 21, 2025.
For the quarter, UltraTech reported consolidated net sales of Rs 16,971 crore, up from Rs 16,487 crore a year earlier. Earnings before interest, depreciation, and tax (EBITDA) stood at Rs 3,131 crore, compared to Rs 3,395 crore, while profit after tax was Rs 1,470 crore, down from Rs 1,777 crore.
Operationally, UltraTech achieved a capacity utilization rate of 73%, and domestic sales volume grew by 10% compared to the same quarter last year. Energy costs decreased by 13% year-on-year, driven by a reduction in fuel prices.
UltraTech’s ongoing expansion program remains on track, with the addition of 1.8 million tonnes per annum (mtpa) to its capacity. The acquisition of ICEM brings UltraTech’s total cement capacity to 171.11 mtpa. With the completion of current expansion projects and the acquisition of Kesoram Cement, UltraTech is on track to surpass 200 mtpa of cement capacity by FY27.
In terms of sustainability, UltraTech became the first Indian cement company to use National Waterways for transporting raw materials, contributing to a reduction in carbon emissions. The company also expanded its waste heat recovery system (WHRS) capacity to 324 MW, with 33.4% of its power mix now sourced from green energy. Looking ahead, UltraTech expects a steady growth trajectory, with a forecasted volume increase of 7-8%, supported by the government’s infrastructure and housing initiatives.
UltraTech Cement, a flagship company of the Aditya Birla Group, is the largest manufacturer of grey cement, ready mix concrete (RMC), and white cement in India. With a strong presence across domestic and international markets, UltraTech operates more than 20 integrated cement plants and several grinding units, offering products that cater to a wide range of construction needs.
The company’s commitment to sustainability is reflected in its efforts to reduce its carbon footprint through energy-efficient practices and innovative technologies, making it a leader in green building solutions. UltraTech Cement plays a crucial role in India’s infrastructure development, contributing to iconic projects while maintaining a strong focus on environmental responsibility and innovation.
