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The country's largest cement company, UltraTech Cement, has released the results for the second quarter of the financial year 2025. During the July-September quarter (Q2), the company's results have been weaker than market estimates. The company's income, profits and operating profits declined on a year-on-year basis. After the results, the company's results also showed a decline. Pressure was also seen on the company's margins.
Consolidated profit of UltraTech Cement was ₹ 825 crores, which was estimated to be ₹ 884 crores. It has seen a decline of about 35% as compared to ₹ 1,281 crores in the same quarter of last financial year. Similarly, the company's income saw a decline of 2.3% year-on-year. The company's income was ₹ 16012 crores in the same quarter of last financial year, which was ₹ 15634 crores in the September quarter this year. It was estimated to be ₹ 14992 crores. Pressure on margins too Talking about operating profit i.e. EBITDA, it also saw a decline of 20.8% year-on-year. It was estimated to be ₹ 2096 crores. In the September quarter of last financial year, the EBITDA of this company was ₹ 2551 crores. But, this time in the September quarter it was ₹ 2018 crores. Similarly, pressure has also been seen on the company's margin. The company's margin fell from 15.9% to 12.9% year-on-year. It was estimated to be 14%. How much growth in volume? Along with the results, the company said that capacity utilization was 65% in the September quarter. On an annual basis, a growth of 3% was seen in domestic volume. This time the company's performance has also been affected due to continuous rains. The expenditure on energy has come down by 14% on an annual basis. Whereas, the cost of raw materials has increased by about 1%. When will the capex work be completed? Regarding capex, the company said that the expansion work is going on as scheduled. The current expansion work will be completed in the financial year 2027. Apart from this, after the completion of the acquisition of Kersoram Cement (10.75 MTPA) and India Cements (14.45 MTPA), the total capacity of the company will reach 200 MTPA. The company says that capacity expansion will help it in reducing its operational expenses and will also lead to improvement in the services provided to the customers. What is the future growth outlook? The company is expanding its capacity considering the long term growth potential of the cement sector in India. Along with infrastructure development, it is aiming to meet the growing demand across the country. The company is expected to benefit from government spending in the infrastructure sector and growth in the urban housing sector. In the coming times, the company is focusing on 7% - 8% volume growth.
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