UltraTech Cement Q3 profit falls 17% to ₹1,470 cr; acquires India Cements

Aditya Birla Group company UltraTech Cement has reported consolidated net sales of ₹16,971 crore for the October-December quarter of FY25 against ₹16,487 crore over the corresponding period of the previous year.

The company's profit before interest, depreciation and tax dropped to ₹3,131 crore compared to ₹3,395 crore in Q3FY24, while net consolidated profit came in at ₹1,470 crore, down 17% from ₹1,777 crore in the year-ago period.

UltraTech says it achieved a capacity utilisation of 73% during the quarter. Domestic sales volume grew 10% YoY. The energy costs were lower by 13% YoY and 4% QoQ mainly on account of a decline in fuel cost.

UltraTech said that after receiving the Competition Commission of India's approval in the quarter, it acquired 10,13,91,231 equity shares of ₹10/- each of The India Cements Limited (“ICEM”), representing 32.72% stake, from the former promoters and one other shareholder.

With this, along with its existing shareholding of 22.77%, UltraTech’s shareholding in ICEM has increased to 17,19,55,887 equity shares or 55.49% of ICEM’s equity share capital. ICEM has become a subsidiary of UltraTech, effective 24th December 2024, the company informed.

Additionally, UltraTech says it has made an open offer to the public shareholders of ICEM to acquire up to 8,05,73,273 equity shares of ₹10/- each, representing 26% of ICEM’s equity share capital at ₹390 apiece.

The tendering period for the offer began on 8th January 2025 and closed on 21st January 2025. 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 says.

CAPITAL EXPENDITURE

UltraTech says as part of its ongoing capacity expansion programme, it commissioned an additional 1.8 mtpa capacity. With the acquisition of ICEM, 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 says it will achieve the unique milestone of more than 200 mtpa cement capacity in the country by the end of FY27.

SUSTAINABILITY

UltraTech says its use of inland waterways over roadways and railways is expected to result in significant carbon emissions reduction. UltraTech commenced 16 MW of WHRS capacity during the quarter, taking its total WHRS capacity to 324 MW. The share of green power (including WHRS and RE Power) in the company’s power mix is 33.4% for the quarter.

In its outlook, UltraTech says the government’s focus on infrastructure and housing projects together with increased rural and urban demand, is expected to generate a sustainable volume growth of 7- 8% going forward.

The cement maker's shares closed 6.60% up at ₹11,400 on the BSE today.