UltraTech Cement Q4 Results: Net Profit Climbs 36%, 700% Dividend Payout; Expansion Plans On Table

UltraTech Cement, the cement manufacturer, has exceeded market expectations with a robust performance in the January to March 2024 quarter. The firm's financial results, released on April 29, revealed a surge in profit after tax (PAT), marking a 36% increase compared to the same period last year. The company's profit after tax stood at Rs 2,258 crore for Q4FY24, surpassing street estimates.

The revenue for the quarter reached Rs 20,419 crore, showing a 2% increase over estimates. UltraTech Cement's EBITDA (earnings before interest, taxes, depreciation, and amortization) for the fourth quarter of the fiscal stood at Rs 4,114 crore, with a margin rise to 20.1%, signalling healthy operational performance.

UltraTech Cement's Board of Directors has recommended a dividend of 700%, amounting to Rs 70 per equity share. The rate of Rs 70 per equity share of face value of Rs 10 per share, aggregates to Rs 2,020.84 crore.

Reflecting on the operational front, UltraTech Cement witnessed a volume growth of 13% during the fiscal year 2024, supported by an 11% growth in Q4 FY24. The company achieved a full-year EBITDA per metric ton of Rs 1,101.

One of the key factors contributing to the company's performance was the favourable movement in fuel prices. UltraTech Cement reported a drop in coal and petcoke prices during FY24, leading to a 13% reduction in imported fuel consumption costs during Q4 FY24 compared to the previous year. Additionally, effective capacity utilization remained strong at 98% during the quarter and 85% for the full year.

In line with its growth strategy, UltraTech Cement expanded its production capacities during the year. The company added 13.27 million metric tons per annum (mtpa) of grey cement capacity across various locations. Notably, it commissioned greenfield cement capacities in Karur, Tamil Nadu, and Kukurdih, Chhattisgarh, aggregating to 5.4 mtpa in April 2024.

Furthermore, UltraTech Cement ventured into new territories with acquisitions. During the quarter, the company acquired a 0.54 mtpa cement grinding asset from Burnpur Cement Limited in Jharkhand, marking its entry into the state. Additionally, it entered into an agreement to purchase a grinding asset with an installed capacity of 1.1 mtpa in Parli, Maharashtra, from India Cements Limited.

Looking ahead, UltraTech Cement remains optimistic about the demand outlook for cement across all sectors. With increased government spending on infrastructure and housing initiatives, the company anticipates robust demand growth in the foreseeable future. The Aditya Birla Group company remains committed to leveraging its strengths and expanding its footprint to capitalize on emerging opportunities in the dynamic market landscape.

According to market analytics firm Crisil, the industry demand growth for FY24 is estimated at approximately 9%, supported by sustained traction from the housing and infrastructure sectors. Despite facing regional hindrances in the third quarter, UltraTech Cement has demonstrated resilience and agility.

The shares of UltraTech Cement ended Monday's trading session with gains of nearly 3% at Rs 9,975 per share on the National Stock Exchange (NSE). The stock has gained nearly 30% in the last one year and in the last three years, the stock has given returns of nearly 60% of its investors.