Ultratech Cement shares gain 3% after expanding capacity at Kukurdih unit

Shares of Ultratech Cement rose as much as 2.90 per cent at Rs 11,525 a piece on the BSE in Monday’s intraday trade. The stock price surged after the company on Friday said that it has expanded its Kukurdih unit’s production capacity by 0.6 mtpa, i.e. from 2.7 mtpa to 3.3 mtpa. 

 

“As part of its ongoing capacity expansion programs, the Company has identified an opportunity for debottlenecking at its integrated unit at Kukurdih, Chhattisgarh. The company’s total cement capacity has reached 156.66 mtpa, including its overseas

Capacity,” Ultratech Cement said in an exchange filing. 

 

UltraTech Cement is India’s largest manufacturer of grey cement, ready-mix concrete (RMC), and white cement. The company operates 24 integrated units, 1 white cement unit, 3 putty units, 29 grinding units, 8 bulk packaging terminals, and 5 jetties across India, the UAE, Bahrain, and Sri Lanka. UltraTech is involved in the production and sale of cement and related products.

 

In the recently concluded second quarter of financial year 2024-25 (Q2FY25), UltraTech Cement reported a 36 per cent fall in net profit for the quarter ended September on account of lower revenue from operations.

 

For Q2FY25, UltraTech’s net profit attributable to owners of the company stood at Rs 820 crore, down 36 per cent from a year ago. Earnings of the company fell, as revenue during the same period was down 2.4 per cent to Rs 15,634.73 crore. Sequentially, UltraTech’s net profit fell 52 per cent and revenue was down 13 per cent.

 

On the bourses, Ultratech Cement stock performance has been in line with the market year to date as it has risen 10 per cent, while gaining 27 per cent in the last one year. In comparison BSE Sensex has risen 10 per cent year to date and 18 per cent in a year. 

 

The company has a total market capitalisation of Rs 3.32 trillion. Its shares are trading at a price to earnings multiple of 50.10 times and at an earning per share of Rs 223.54. 

 

At 11:25 AM; the shares of the company were trading 2.89 per cent higher at Rs 11,523.05 a piece. By comparison, the BSE Sensex was down 0.01 per cent at 79,797.43 level.