UltraTech Cement Q4 net profit rises 10% amid healthy volume growth

The growth in the company's overall consolidated sales volume during the quarter is amid its acquisitions of Kesoram Industries and India Cements

Aditya Birla Group’s UltraTech Cement’s consolidated net profit (attributable to the owners of the parent) for the fourth quarter (Q4) of 2024-25 (FY25) grew by 9.92 per cent year-on-year (Y-o-Y), to ₹2,482.04 crore, amid an overall sales volume growth of 17 per cent Y-o-Y to 41.02 million tonnes and improved grey cement (used as a binder in construction work) realisations.

 

In the third quarter of FY25, the company witnessed a decline in its profit amid weak realisations, despite posting volume growth. In Q4FY25, grey cement realisations improved by 1.6 per cent quarter-on-quarter (Q-o-Q), despite price weakness in the southern and western regions and overall muted infrastructure activity across the company’s markets.

 

 

Growth in the company’s overall consolidated sales volume during the quarter was driven by its acquisitions of Kesoram Industries and India Cements. UltraTech’s Chief Financial Officer Atul Daga, during an earnings call on Monday, said that the company has identified brownfield opportunities in the India Cements network for the future.

 

In the recently concluded quarter, the company’s revenue from operations grew by almost 13 per cent Y-o-Y, to ₹23,063 crore. The revenue surpassed the Bloomberg analysts’ poll estimate of ₹22,967.4 crore. However, the profit missed the estimate of ₹2,538.4 crore.

 

The company’s total expenses for the quarter stood at ₹20,044.49 crore, up 15.32 per cent Y-o-Y. Energy costs were lower by 14 per cent Y-o-Y, mainly due to a decrease in fuel costs, which stood at ₹881 per tonne in Q4FY25 compared to ₹1,025 per tonne in Q4 of 2023-24.

 

In Q4FY25, the company’s operating earnings before interest, tax, depreciation, and amortisation (Ebitda) per tonne (excluding acquired assets) was ₹1,270 per tonne, up 7 per cent Y-o-Y and 32 per cent Q-o-Q, amid the marginal increase in realisations and improved cost efficiency.

 

Sequentially, the company’s revenue increased by 29.72 per cent and profit by 82.6 per cent. The results came amid the all-India quarterly cement price hike of ₹12 per bag.

 

The company’s revenue for FY25 stood at ₹75,955.13 crore, up 7.12 per cent Y-o-Y. Its profit during the same period, however, declined by 13.8 per cent Y-o-Y, to ₹6,039.11 crore. 

 

UltraTech added 42.60 million tonnes per annum (mtpa) through organic and inorganic growth during FY25, resulting in a profit after tax decrease to ₹6,039 crore from ₹7,005 crore, due to increased interest and depreciation, the company said.

 

The company’s net debt-to-Ebitda stood at 1.16 times as of March 31, 2025; it aims to bring the ratio to 0.5 times.

 

In FY25, UltraTech’s domestic grey cement capacity increased to 183.4 mtpa on a consolidated basis. Together with its overseas capacity of 5.4 mtpa, the company’s global capacity stands at 188.76 mtpa. It aims to further enhance its grey cement capacity to 210.5 mtpa by 2026-27.

In FY25, the company spent ₹9,000 crore on organic capital expenditure (capex). In 2025-26 (FY26), the company will spend ₹9,000–10,000 crore on capex, with ₹6,000 crore earmarked for strategic capacity expansion investments, Daga informed.

 

As part of its ongoing capacity expansion program, UltraTech commissioned 17.4 mtpa of capacity across several locations in India during FY25. 

 

Going forward, UltraTech is expecting “sustainable volume growth of 7–8 per cent amid the government’s focus on infrastructure and housing projects, along with increased rural and urban demand”.

 

“While the sector may face short-term challenges, the long-term outlook indicates signs of improvement, with stable demand likely to support growth,” the company added.

 

Daga clarified that the weak beginning of FY26 and short-term challenges are expected only for April and May, due to high temperatures and heat across the country, which may slow down construction activity. Daga expects the activity to be restored with the beginning of the monsoon.

 

The officer said that positive movements in government spending and new project announcements will support steady cement consumption YoY. He believes that urban housing demand may rise despite the current real estate slowdown. Moreover, fuel costs are under control, “while coal and petcoke have not seen much movement”, Daga said.

 

“We’ve also seen the various announcements made by the US government about tariffs, which are having an indirect impact on ocean freight. But we’ll have to wait and watch how things settle down,” Daga added.

 

Earlier, UltraTech’s peer ACC reported a Y-o-Y increase of 14 per cent in its sales volume (cement and clinker), while Dalmia Bharat recorded a decline of 3 per cent.

 

The company’s board of directors recommended a dividend of 775 per cent at the rate of ₹77.5 per equity share with a face value of ₹10 per share, totalling ₹2,283.75 crore.

 

The company’s share listed on the BSE closed at ₹12,108.25 on Monday (April 28).