MUMBAI : Regardless of rising uncooked materials costs and power prices, Aditya Birla Group-owned UltraTech Cement Ltd, on Friday, reported a 6.6% leap in consolidated internet revenue to ₹1,688.45 crore for the primary quarter of FY24 as in comparison with ₹1,584.08 crore a 12 months in the past.
The revenue beats Bloomberg analysts’ estimate at ₹1,615.3 crore for the nation’s largest cement-maker.
Throughout April-June, the corporate’s income from operations elevated by 17% y-o-y to ₹17,737 crore towards ₹15,163.98 crore in Q1 FY23.
The corporate mentioned it has achieved a capability utilisation of 89% as towards 83% in the course of the first quarter of final fiscal.
Ultratech’s home gross sales quantity rose 20% year-on-year, mentioned the corporate.
Cement companies in India have been struggling for higher margins on account of a number of components together with rising power prices, rising uncooked materials costs and fierce competitors after the entry of Adani Group into the business by way of acquisition of Ambuja Cements Ltd and ACC Ltd in a closely-fought battle final 12 months.
Ultratech Cement mentioned the power value was greater by 3% y-o-y, primarily on account of foreign money devaluation in the course of the June quarter.
Moreover, a 6% rise in uncooked materials value, primarily pushed by the upper costs of fly-ash and slag, had a compounding impact on the working margins.
The corporate’s working margin got here right down to ₹1,034 throughout June quarter from ₹1,248 in the identical interval of final 12 months and ₹1,060 within the earlier quarter.
Nevertheless, the demand for cement throughout all sectors continues to stay robust, mentioned the corporate.
“Larger infrastructure spending forward of the overall elections in 2024 is anticipated to additional propel cement demand throughout this fiscal,” the corporate mentioned.
Ultratech has commissioned a cement capability of three mtpa in the course of the quarter, taking the corporate’s whole gray cement capability to 129.95 mtpa in India.
The revenues from gray cement (home) stood at ₹15,247 crore, a 17% progress y-o-y, white cement revenues rose 18% y-o-y to ₹590 crore, and earnings from readymix concrete grew 37% y-o-y to ₹1,233 crore within the June quarter of FY2024.
Ultratech’inventory, with a market capitalization of ₹2.35 trillion, over the previous 12 months, has yielded a 32% return, outperforming the broader market index Nifty 50’s 19% returns.
Shares of Ultratech Cement closed 1.28% decrease at ₹8,119.20 apiece on the NSE on Friday as Indian markets logged off the week with a 1.31% loss.
UltraTech’s growth program is progressing as per schedule. Following the profitable commissioning of 12.4 mtpa capability of gray cement in FY23, the corporate has additional commissioned 4.3 mtpa capability to this point on this monetary 12 months. These embrace 2.2 mtpa brownfield cement capability at Patliputra in April 2023, 0.8 mtpa brownfield cement capability at Neem ka Thana, Rajasthan in Could 2023 and 1.3 mtpa brownfield cement capability at Sonar Bangla, West Bengal in July 2023.Work on its subsequent part of progress of twenty-two.6 mtpa is in full swing. Industrial manufacturing from these new capacities is anticipated to go on stream in a phased method by FY25/FY26.
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Up to date: 22 Jul 2023, 12:27 AM IST
Supply: Live Mint