UltraTech Cement Ltd.'s consolidated net profit fell in the second quarter of the current financial year, missing analysts' estimates as the company was impacted by weak cement pricing and subdued demand due to the monsoon season.
The cement manufacturer's bottom-line stood at Rs 825 crore in the quarter ended Sept. 30, 2024, compared to Rs 1,280 crore clocked in the year-ago period, according to an exchange filing on Monday. Analysts tracked by Bloomberg had a consensus estimate of Rs 1,039.24 crore.
UltraTech Q2 FY25 Results: Key Highlights (Consolidated, YoY)
Revenue down 2.4% to Rs 15,635 crore. (Bloomberg estimate: Rs 15,711.18 crore).
Ebitda down 20.8% to Rs 2,019 crore. (Bloomberg estimate: Rs 2,314.22 crore).
Margin at 12.9% versus 15.9% (Bloomberg estimate: 14.7%).
Net profit down 35.5% to Rs 825 crore. (Bloomberg estimate: Rs 1,039.24 crore).
Other Highlights
UltraTech's consolidated sales volume during the quarter grew 4% year-on-year to 27.84 million tonne. This was despite the muted demand across the country to due to the monsoon season. However, volumes were 14% lower on a sequential basis.
The companies domestic grey cement sales realisations fell 8.4% year-on-year and 2.9% sequentially to Rs 4,901 per million tonne in the second quarter. Despite the 14% lower energy costs, the company's Ebitda per unit fell by Rs 244 to Rs 732 per million tonne.
The company achieved capacity utilisation of 68% during the quarter.
Capacity
UltraTech Cement's total cement capacity as of October 2024 stood at 156.1 million tonne. The company has stated that its expansion program is progressing as per schedule.
With 9.9 million tonne per annum (MTPA) capacity already added so far in fiscal 2025, the company plans to add 6.3 MTPA capacity more across India. It also plans to add 11.8 MTPA and 14.7 MTPA of capacity in financial year 2026 and 2027, respectively. All of these planned capacity additions will take the company's' overall capacity to 188.9 million tonnes per annum by March 2027.
However, this 188.9 MTPA does not include the company's acquisition of Kesoram Industries' 10.75 MTPA and India Cement's 14.45 MTPA capacity, that is currently awaiting regulatory approvals.
Shares of UltraTech Cement fell as much as 2.7% to 10,771.4 each after the Q2 results were announced. The counter pared losses to trade 1.11% lower at Rs 10,946 apiece around 2:45 p.m. Meanwhile, the benchmark NSE Nifty 50 was trading 0.1% lower at 24,829.15.
The stock has risen 4.24% in the year-to-date., and 29.4% in the past 12 months. The total traded quantity in the day so far stood at 1.55 times the 30-day average. RSI of the stock was 37.63.
Out of 41 analysts tracking the company, 30 maintain a 'buy' rating, nine recommend a 'hold,' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.7%.
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