UltraTech Cement, one of India’s leading players in the cement industry, has reported a 9.9% increase in net profit for the quarter ending March 31. This growth can be attributed to enhanced sales performance and a reduction in fuel and power expenses within the grey cement sector. The company’s robust financial results reflect its strategic initiatives and operational efficiencies.

Strong Quarterly Performance

For the latest quarter, UltraTech’s operating EBITDA per metric tonne (excluding acquired assets) saw a 7% year-on-year rise, reaching ₹1,270/mt, which is a significant 32% increase compared to the previous quarter. Consolidated sales volumes during this period reached 41.02 million metric tonnes, marking a remarkable 17% annual growth. The grey cement segment achieved an impressive 89% capacity utilization.

• Sales Realization: Revenue per metric tonne for Q4FY25 was recorded at ₹5,052, reflecting a 2.3% decline from the previous year but a 1.6% increase from the preceding quarter.
• Cost Reductions: Fuel and power costs in the grey cement sector dropped significantly, down 16% and 10% year-over-year, with fuel expenses at ₹864/mt and power costs at ₹354/mt.

Strategic Acquisitions and Future Growth

In a significant move, UltraTech finalized the acquisition of Kesoram Cement on March 1, 2025, with financial consolidation set to commence on April 1. Despite the quarter’s strong performance, the company’s net profit for the full fiscal year fell 13.8% to ₹6,039 crore, influenced by increased finance and depreciation costs. However, revenue rose by 7.1%, totaling ₹75,955 crore.

Investment in Growth and Sustainability

UltraTech’s capital expenditure (capex) for the year was reported at ₹9,428 crore, with 70% allocated for growth initiatives, 10% for environmental, social, and governance (ESG) efforts, and the remainder for other activities. The company intends to invest around ₹10,000 crore in capex for the upcoming fiscal year.

• The company’s domestic capacity has expanded to 183.4 million tonnes per annum (mtpa), a notable increase from 140.8 mtpa at the end of FY24.
• During FY25, UltraTech added 16.3 mtpa of organic capacity and 26.3 mtpa of inorganic capacity.

Looking Ahead

The firm’s future plans include targeting an additional 12.4 mtpa capacity for FY26, aiming for a total domestic capacity of 210.5 mtpa by the end of FY27. The capacity utilization for FY25 stood at 78%, with total sales volumes reaching 135.83 million tonnes, up 14% from the previous year.

In light of these strong results, UltraTech’s board has proposed a dividend of ₹77.50 per equity share, further enhancing shareholder value. On the stock market front, UltraTech shares closed at ₹12,108.25 on the Bombay Stock Exchange (BSE), reflecting a 1.05% decrease on the announcement day.

This solid performance underscores UltraTech Cement’s commitment to growth and operational excellence in the competitive cement sector.