UltraTech Cement (ULTRACEMCO) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw a strong recovery in cement demand, with domestic sales volume up 10.5% year-over-year and 9% sequentially, and a 1.4% QoQ increase in realizations, with notable price improvements in North and West regions exceeding 3%.

• Major acquisitions included an 8.42% stake in Star Cement (INR 776 crore) and a controlling stake in India Cements, which became a subsidiary effective December 24, 2024, adding 14.45 mtpa grey cement capacity.

• UBS retail outlets increased to 4,432, contributing 19.5% of domestic grey sales volume and driving significant sales in Tier-2/3 towns.

• Premium product mix rose to 26.5%, up 15% year-over-year.

• Integration of Kesoram assets is expected by FY25 year-end, with all project sites progressing well and targeted capacity of 185 million tons by year-end, including acquisitions.

Financial highlights

• Consolidated revenues for Q3 FY25 were ₹16,971 crore, up 3% year-over-year and 11% sequentially.

• EBITDA per metric ton reached INR 964, up over 30% sequentially from Q2.

• PAT was ₹1,470 crore, down 17% year-over-year but up 79% sequentially.

• Fuel costs declined to 1.76 kcal from 1.84 per kcal last quarter, with further reduction expected to 1.7 kcal.

• Lead distance reduced to 377 km from 400 km, supporting logistics cost savings.

Outlook and guidance

• Double-digit volume growth targeted for next year, with capacity utilization expected at 80%-85%.

• Industry demand growth projected at 6%-7% for Q4 and double-digit for FY26.

• Further price increases anticipated in the coming quarter, with January already seeing a 1.5% rise in Central and West.

• Organic growth plans remain on track, with 15.7 mtpa capacity addition in FY25 and 26.5 mtpa planned for FY26 and FY27.

• CapEx for FY26 guided at INR 9,000 crore, tapering to INR 6,000-7,000 crore in FY27.