On Wednesday, UltraTech Cement unveiled its latest achievement, successfully launching an additional production capacity of 1.2 million tonnes per annum (mtpa). This expansion is part of the company’s ongoing efforts to boost efficiency and optimize production across various sites. The cement giant expressed enthusiasm about completing several initiatives that have positively impacted its operational capacity.
New Facilities Enhance Production Capacity
The recent upgrades include a new integrated unit in Hirmi, Chhattisgarh, contributing 0.8 mtpa to its output, and a grinding facility in Roorkee, Uttarakhand, which adds another 0.4 mtpa.
- Hirmi, Chhattisgarh: Integrated unit with 0.8 mtpa capacity
- Roorkee, Uttarakhand: Grinding unit adding 0.4 mtpa
These enhancements push UltraTech’s total domestic grey cement manufacturing capacity to an impressive 178.86 mtpa. When combined with its international production capabilities of 5.4 mtpa, the company now boasts a global capacity of 184.26 mtpa.
Financial Performance Insights
Earlier this year, in January, UltraTech Cement reported its financial results for the third quarter of FY24. The company’s profit stood at Rs 1,473.51 crore, reflecting a 16.98% decline from Rs 1,774.78 crore reported during the same period last year. However, the revenue from operations increased by 2.71% year-over-year, reaching Rs 17,193.33 crore.
- Profit: Rs 1,473.51 crore (down 16.98% YoY)
- Revenue: Rs 17,193.33 crore (up 2.71% YoY)
- Capacity Utilization: 73%
- Domestic Sales Volume: Increased by 10% YoY
During this quarter, UltraTech benefited from a 13% decrease in energy costs year-over-year and a 4% reduction compared to the previous quarter, primarily due to lower fuel expenses.
Conclusion
With the recent capacity boosts and positive financial strategies, UltraTech Cement is well-positioned to meet growing market demands while enhancing its operational efficiencies. This commitment to expansion and innovation underscores the company’s leadership in the cement industry, ensuring that it continues to thrive in a competitive landscape.
For further insights into the cement sector and UltraTech’s strategic moves, explore our related articles on industry trends and forecasts.
