UltraTech Cement Reports Strong Q4 Performance with Impressive Growth Figures
UltraTech Cement has announced outstanding financial results for the fourth quarter, showcasing a 10% increase in consolidated net profit, reaching an impressive ₹2,482.04 crore. The company’s revenue from operations also saw a robust 13% growth, climbing to ₹23,063.32 crore year-on-year. This performance is underscored by significant operational volumes and strategic advancements in renewable energy.
Strong Sales Volumes and Profit Margins
The company revealed that its consolidated sales volumes soared to 41.02 million metric tons, marking a 17% rise compared to the previous year. When adjusted for acquired assets, the operating EBITDA per metric ton stood at ₹1,270, reflecting a solid 7% year-on-year growth and an impressive 32% increase quarter-over-quarter.
- Net Profit: ₹2,482.04 crore
- Revenue: ₹23,063.32 crore
- Sales Volumes: 41.02 million metric tons
Renewable Energy Milestone
In an exciting development, UltraTech has crossed the milestone of 1 Gigawatt in renewable power installations, making it one of the pioneering industrial entities in India to achieve such a capacity for its own energy consumption.
Generous Dividend Proposal
During its board meeting, UltraTech Cement proposed a remarkable 775% dividend, translating to ₹77.50 per equity share based on a face value of ₹10. This amounts to a total payout of ₹2,283.75 crores, highlighting the company’s commitment to returning value to its shareholders.
Expansion and Capacity Growth
The company is actively pursuing its capacity expansion plans, as detailed in their recent exchange filing. UltraTech launched an impressive 17.40 million tons per annum (mtpa) capacity across various locations in FY25. Notably, it also established its first bulk terminal in Lucknow, Uttar Pradesh, designed to handle 1.8 mtpa of cement. With these initiatives, the domestic grey cement capacity has escalated to 183.36 mtpa, complemented by an international capacity of 5.4 mtpa, bringing the total global capacity to 188.76 mtpa.
Positive Outlook Amid Challenges
Looking ahead, the company’s outlook remains optimistic. With the government’s focus on infrastructure and housing projects, coupled with a surge in demand in both rural and urban sectors, a steady growth rate of 7-8% is anticipated. While the sector may face short-term challenges, the long-term trajectory appears promising, supported by consistent demand.
Stock Performance Insight
Following the announcement of its Q4 results, UltraTech Cement’s share price closed at ₹12,108.25, down by 1.05% on the BSE. Anshul Jain, Head of Research at Lakshmishree Investments, noted that the stock recently broke out of a bullish 202-day base at ₹12,000, exhibiting strong momentum. If the share price maintains a position above ₹12,200, it could pave the way toward ₹12,800, with a long-term target set at ₹14,000. Although there has been no significant institutional accumulation, the positive price structure indicates potential for further gains if trading volumes increase.
UltraTech Cement continues to position itself as a leader in the cement industry, combining financial strength with strategic growth initiatives. For more insights into industry performance, check our related articles on TVS Motor and IDBI Bank’s quarterly results.
