UltraTech Cement Q3 PAT down 17% to ₹1,474 crore, sales volume up 10% YoY

UltraTech Cement Ltd, an Aditya Birla Group company, for the third quarter ended December 31 reported a 17% decline in consolidated net profit to ₹1,474 crore as compared with ₹1,775 crore a year earlier. Revenue from operations grew marginally by 2.7% to Rs 17,193 crore from Rs 16,740 crore in the same period last year.

During the quarter, upon receiving approval from the Competition Commission of India, UltraTech acquired 31.72% stake in The India Cements Ltd., from the former promoters and one other shareholder. With this acquisition, along with its existing shareholding of 22.77%, UltraTech’s total shareholding in the company has increased to 55.49%. India Cement has now become a subsidiary of UltraTech. 

Additionally, UltraTech has made an open offer to the public shareholders of India Cements to acquire upto 26% stake at an offer price of ₹390 per share. 

“The number of shares tendered under the open offer is more than the size of the offer. Consequently, UltraTech will accept shares tendered on a proportionate basis in consultation with the Manager to the Offer. Payment of consideration for shares accepted will be completed on or before 4th February, 2025,” the company said in a statement. This its shareholding in India Cements will increase to 81.49%.

During the quarter UltraTech achieved a capacity utilisation of 73% and domestic sales volume grew 10% YoY. Energy costs were lower by 13% YoY on account of decrease in fuel cost, the company said.

As part of its ongoing capacity expansion program, UltraTech commissioned an additional 1.8 mtpa capacity during the quarter. With the acquisition of India Cements , UltraTech’s cement capacity has increased to 171.11 mtpa, on a consolidated basis. 

Upon completion of the ongoing expansion projects and the acquisition of Kesoram Cement (10.75 MTPA), UltraTech will achieve the milestone of more than 200 mtpa cement capacity by end of FY27, the company said.