NewKerala.com

Key Points

UltraTech Cement saw a sequential decline in Q1 profits and revenue but showed strong annual growth. The company benefited from higher sales volumes after integrating new acquisitions. Improved cement prices in key markets boosted EBITDA margins significantly. Meanwhile, the company denied reports about a CCI probe into alleged cartelization.

Key Points: UltraTech Cement Q1 profit drops 10% sequentially despite YoY growth

  • Q1 net profit falls 10% QoQ to Rs 2,220 crore
  • Revenue declines 7.75% sequentially but grows 17.7% YoY
  • Sales volumes rise 9.7% aided by recent acquisitions
  • EBITDA jumps 44% YoY with improved operating margins
2 min read

UltraTech Cement's Q1 net profit falls 10 pc sequentially, revenue down 7.75 pc

UltraTech Cement reports 10% QoQ profit decline but posts 49% YoY growth, with improved EBITDA margins and higher sales volumes

"Operating EBITDA per tonne improved to Rs 1,248, up Rs 337 from same quarter last year - UltraTech Cement filing"

Mumbai, July 21

The Aditya Birla Group-owned cement company UltraTech Cement on Monday reported a net profit of Rs 2,220.91 crore in the April-June quarter (Q1) of current fiscal, down 10.26 per cent from Rs 2,474.79 crore in the previous quarter (Q4 FY25).

Revenue from operations also declined by 7.75 per cent, falling to Rs 21,275.45 crore in Q1 from Rs 23,063.32 crore in Q4, according to its stock exchange filing.

Similarly, total income dropped 7.38 per cent to Rs 21,455.68 crore, while total expenses were down 8.18 per cent to Rs 18,405 crore compared to the previous quarter.

However, when compared to the same quarter last year (year-on-year), the company showed strong growth.

Net profit jumped 49 per cent year-on-year (YoY) from Rs 1,493.45 crore, and revenue rose 17.7 per cent from Rs 18,818.56 crore in Q1 of the previous fiscal.

The improved annual performance was driven by a 9.7 per cent increase in sales volumes, reaching 36.83 million tonnes, helped by the recent integration of The India Cements Limited and the cement business of Kesoram Industries.

The company also saw stronger cement prices in southern and eastern markets due to rising demand in infrastructure and real estate, along with market consolidation.

UltraTech's EBITDA rose 44 per cent year-on-year to Rs 4,591 crore. Operating EBITDA per tonne improved to Rs 1,248, up Rs 337 from the same quarter previous financial year.

The operating margin stood at 21 per cent in Q1 FY26, compared to 16 per cent in the year-ago period, the company said in its filing.

Following the results, UltraTech Cement’s shares closed the Monday’s trading session at Rs 12,561, up by 0.5 per cent or Rs 63 apiece on the National Stock Exchange (NSE).

In last five days, the shares gave almost flat return of Rs 59 or 0.47 per cent, as per the official data.

Meanwhile, earlier this month, reports surfaced regarding a probe by the Competition Commission of India (CCI) into alleged cartelisation involving UltraTech Cement's subsidiary, India Cements.

The investigation stemmed from a complaint by ONGC, which accused several cement companies of colluding during its tendering process.

However, UltraTech Cement denied any such investigation. In a stock exchange filing on July 5, the company dismissed the media reports as “false and misleading.”

- IANS

Share this article:

Reader Comments

P
Priya S
The CCI investigation news is worrying though. If there's any truth to cartelization allegations, it would be very disappointing. Big companies should lead by example in ethical business practices.
A
Arjun K
As someone in construction business, I've seen cement prices rise steadily. Good that UltraTech is expanding capacity - we need more competition to keep prices reasonable for home buyers. �
S
Sarah B
Interesting to see how monsoon season affects their next quarter results. Construction slows down during heavy rains, but pent-up demand usually leads to strong Q3 performance.
V
Vikram M
EBITDA growth of 44% YoY is impressive! Shows their operational efficiency is improving despite input cost pressures. Aditya Birla Group companies usually deliver in long run.
K
Kavya N
Hope they focus more on sustainable cement production methods. With climate change concerns, construction industry needs to reduce carbon footprint. ♻️

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50