UltraTech Cement on Thursday reported a robust 68.75 per cent increase in its net profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings. The company logged a net profit of Rs 1,280.38 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 758.7 crore in the second quarter of the previous fiscal year (FY23).
The company logged a revenue of Rs 16,012.13 crore in the second quarter of the current fiscal year, up by 15 per cent from Rs 13,892.69 crore in the corresponding quarter a year earlier. The total income of the company stood at Rs 16,179.26 crore for the quarter ended September in the current fiscal year, against Rs 14,038.95 crore in the same quarter last year.
The company further stated that it achieved capacity utilisation of 75 per cent during the quarter on expanded capacity. It added that the energy cost reduced by 10 per cent on a year-on-year (YoY) basis, while raw material expenses increased by 4 per cent due to a surge in the cost of fly ash and slag.
Cement demand maintained a positive pace during the second quarter of the fiscal year, the firm reported demand for all sectors due to government-led infrastructure, rural development, and urban residential demand.
The company further noted that it’s current expansion program is going according to schedule and a capacity of 5.5 mtpa has been commissioned during the fiscal year after a capacity addition of 12.4 mtpa during the last fiscal year. “Green power now contributes 22 per cent of the total power requirement with 262 MW of WHRS and 429 MW of renewable energy. The Company’s total grey cement manufacturing capacity in India now stands at 132.45 mtpa,” the firm said.
Commenting on the demand, the firm noted, “Demand will also be led by pre-election spending, continued government push on infrastructure development, and sustained real estate development. All of this augurs well for the Company.”