UltraTech’s Q4 profit jumps 12.7% excluding one-times

However, last year’s profit included lump sum profit and stood at normalized profit excluding 1,478 cores, UltraTech said. Thus, adjusted for one-offs, its net profit in Q4 grew 12.7% over the previous year.

Company’s earnings before interest, tax, depreciation and amortization (EBITDA) during the quarter 3,322.5 crore was up 8% from a year ago. However, margin at 17.8% was lower by 170 basis points (bps) from 19.5% as input costs rose.

UltraTech Cement’s energy cost has increased by 17% compared to a year ago. Pet coke and coal prices rose by 18% and raw materials by 9% due to costlier fly ash, slag and gypsum.

However, on a sequential basis, the decline in input costs meant a sharp improvement in operating performance. Energy cost declined by 4% sequentially, EBITDA increased by 42.2% sequentially, while net profit increased by 57.44%.

UltraTech’s Ebitda per tonne, as calculated by analysts at Jefferies India Ltd, was 1,060, up 155 sequentially but less 60 tonnes on a year-on-year basis. Total cost per ton decreased 5% sequentially but was still 7% higher than a year ago.

Capacity expansion is supporting UltraTech’s volume growth. It commissioned a cement capacity of 5.6 million tonnes per annum (MTPA) during the quarter, taking the company’s total gray cement capacity in India to 126.95 MTPA.

Domestic gray sales volume at 29.9 million tonnes was up 15% year-over-year and 23% sequentially, with capacity utilization at 95%. Including exports, clinker, white cement sales, and overseas gray cement sales, consolidated sales volume was 31.7 million tonnes, up 14% year-on-year and 22% sequentially.

Higher volumes helped drive consolidated net sales 18,436 crore, a growth of over 19% 15,557 crore a year ago. On a sequential basis, net sales increased 21%. During the year, the company commissioned an additional capacity of 12.4 MTPA of gray cement.

In April, it set up a 2.2 MTPA brownfield cement capacity at Patliputra in Bihar.

The company said work on the next phase of development of 22.6 MTPA has already started, and commercial production from these new capacities is expected to commence by FY25 and FY26 in a phased manner.

Upon completion of these expansions, its capacity will increase to 160.45 MTPA, consolidating its position as the world’s third largest cement company outside China and the largest ever in India.