UltraTech Cement (ULTRACEMCO) Q1 24/25 earnings summary

Executive summary

• Domestic sales volume grew 6% year-over-year in Q1 FY25, with capacity utilization at 85% and strong rural and construction demand; infra demand was slow but expected to pick up.

• Profit after tax stood at ₹1,697 crore, nearly flat year-over-year.

• Grey cement capacity expanded by 8.7 MTPA, reaching 149.5 MTPA in India, with UltraTech adding 32% of new national capacity last year and targeting 40% this year.

• Green power mix improved to 29.4%, up 34% year-over-year, with 23 MW of new WHRS capacity commissioned.

• Open offer for RAK White Cement in UAE concluded, increasing stake to 54%; Kesoram Cement merger progressing with effective date set as April 1, 2024.

Financial highlights

• Consolidated revenues for Q1 FY25 were ₹17,879 crore, up 2% year-over-year; EBITDA was ₹3,205 crore, down 1% year-over-year; PAT was ₹1,697 crore, nearly flat year-over-year.

• Realization/prices declined 2.4% year-over-year in Q1; July saw a further 1.5% drop versus Q1 average; domestic grey cement realization declined 5.7% year-over-year.

• Cost per ton was INR 755 in Q1 due to one-off expenses; recurring costs expected to revert to INR 675 per ton.

• Ready Mix Concrete revenue grew 20% year-over-year to ₹1,485 crore; volume increased 22% to 3.25 million m³.

• Cash outflow for CapEx was about INR 2,000 crore in Q1; full-year CapEx guidance is INR 8,000–9,000 crore.

Outlook and guidance

• Industry volume growth expected at 7–8% for FY25; company targets double-digit growth, with infrastructure and rural schemes driving demand.

• Capacity is projected to reach 157 MTPA by FY25 and 183.5 MTPA by FY27, excluding pending acquisitions.

• Price improvements are unlikely until the second half of the year, with Q2 typically weak due to monsoon.

• Cost reduction target raised to over INR 300 per ton over three years, driven by logistics and operational efficiencies.

• Commercial production from new capacities is expected to commence in phases by FY25/FY26.