UltraTech Cement Q4 Net Profit Surges 35%, Revenue Up 9.4%

UltraTech Cement witnessed a remarkable 35 percent surge in its net profit during the fourth quarter of the fiscal year 2023-24, surpassing market expectations. This impressive growth was primarily fueled by robust demand for building materials coupled with reduced operating costs.

The company announced that its profit soared to Rs 2,258.58 crore in the period spanning January to March, a substantial increase from Rs 1670.10 crore recorded in the corresponding period of the previous year, as revealed on April 29, according to a moneycontrol.com report.

In a move to reward its shareholders, the board of the Aditya Birla Group entity proposed a dividend of Rs 70 per share with a face value of 10 each for the fiscal year 2023-24.

Furthermore, UltraTech Cement reported a noteworthy uptick in revenue, which climbed by 9.4 percent to reach Rs 20,418.94 crore. Notably, the revenue surged by 21 percent sequentially, while the profit witnessed a remarkable 27.3 percent increase.

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The cement sector faced initial challenges at the onset of the quarter, attributed to severe winters in the northern regions and festive celebrations in the southern parts of the country. Moreover, the eastern region encountered fiscal hurdles; however, it displayed signs of recuperation towards the culmination of the quarter. Notably, during the fourth quarter of the fiscal year 2023-24, cement prices experienced pressure due to the reversal of price hikes initiated in September-October amid subdued demand.

This remarkable performance occurred amidst a backdrop of strong demand driven by robust government spending on infrastructure projects and the proliferation of affordable housing initiatives.

The company’s consolidated EBITDA surged to Rs 4,250 crore from Rs 3,444 crore recorded in the previous fiscal year.

According to a sector report by market analytics firm Crisil dated April 23, cement volume growth rebounded impressively, registering a healthy 7-8 percent year-on-year growth. This resurgence was attributed to aggressive volume expansion initiatives, following a growth rate of approximately 15 percent in the first half of the fiscal year, which experienced a moderate slowdown in the third quarter due to regional challenges.

Source: moneycontrol

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