UltraTech Cement, an Aditya Birla Group company, has reported a significant jump in its consolidated net profit for the second quarter ended September 30, 2023. The company’s net profit surged by 68.7% to Rs 1,280.38 crore, compared to Rs 758.7 crore in the same quarter last year.
According to UltraTech Cement, its consolidated revenue from operations also witnessed a growth of 15% during the quarter, reaching Rs 16,012.13 crore from Rs 13,892.69 crore in the previous year. The company’s volumes experienced a 16% increase, driven by demand in infrastructure, rural development, and urban residential sectors.
Total expenses for the quarter rose to Rs 14,493.01 crore, up from Rs 12,934.27 crore in the corresponding period last fiscal. However, the company achieved a capacity utilization rate of 75% on its expanded capacity.
In a press release, UltraTech Cement expressed optimism about the future, stating that demand revival is expected, especially during the festive season and the January-March peak construction period. Factors such as pre-election spending, government-led infrastructure development, and continued real estate development are projected to drive demand in the coming months.
Furthermore, the company reported a 10% reduction in energy costs year-on-year, while raw material costs increased by 4% due to higher prices of flyash and slag. UltraTech Cement also provided an update on its ongoing expansion program, announcing that it has commissioned 5.5 million tons per annum (mtpa) capacity so far this financial year, following a capacity addition of 12.4 mtpa during FY23.
In the stock market, shares of UltraTech Cement were trading 1.4% higher at Rs 8,400.10 apiece on the BSE.
These positive financial results highlight Ultratech Cement’s strong performance in the market, driven by increased volumes and demand from various sectors. The company’s successful expansion program and cost management strategies further contribute to its growth and profitability. With promising prospects for the future, UltraTech Cement continues to solidify its position as a leading player in the cement industry.
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