- 29 Apr 2025
- ICICIdirect Research
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ULTRATECH CEMENT CONSOLIDATED REVENUE INCREASED BY 13% YOY
ULTRACEMCO - 11929 Change: 24.00 (0.20 %)News: Consolidated revenue increased by 13% YoY (+29.7% QoQ) to Rs 23063.3 crores, primarily led by strong sales volume growth of 16.9% YoY (+ 35.1% QoQ) to 41 mtpa. This is also on account of full consolidation of India Cements during the quarter (additional volumes of 2.64 mtpa from India Cements). Grey cement realisation has improved 1.6% QoQ (down 2% YoY) while blended realisation is down 4% QoQ (-3.4% YoY) on account of consolidation of India Cements. Total cost/ton was down by 3.3% YoY (-8.3% QoQ), led by operational efficiencies and positive operating leverage. EBITDA/ton declined by 4% YoY (+18.1% QoQ) to Rs 1126/ton. Subsequently, EBITDA was up 12.3% YoY (+59.5% QoQ) to Rs 4618.4 crores. PAT increased by 10% YoY (+82.6% QoQ) to Rs 2489.5 crore. For FY25, revenue is up ~7.1% YoY, as volume growth of 10.2% YoY was partially offset by 2.8% decline in blended realization. FY25 EBITDA/ton stands at Rs 957/ton (-12.1% YoY), mainly on account of lower realization
View: Operational performance during the quarter improved substantially QoQ during the quarter, led by strong volume growth and improvement in realisation. Company has been expanding its capacity aggressively (~43 mtpa added in the last 1 year through organic & in-organic routes), leading to better-than-industry volume growth. Volume growth visibility remains strong considering the company's continuous focus on adding capacities and gaining market share across regions (target to reach total capacity of 215 mtpa by FY27 from current capacity of 188.8 mtpa). Moreover, with further improvement in realizations and operational efficiencies (target of further reduction in total cost/ton by Rs 300/ton over the next 2-3 years), overall operational performance is expected to improve substantially
Impact: Positive