UltraTech Cement’s internet revenue falls 42% to Rs 759 crore; gross sales up 16% to Rs 13,893 crore in Q2

Aditya Birla group agency UltraTech Cement on Wednesday reported 42.09 per cent fall in its consolidated internet revenue at Rs 758.70 crore for the second quarter of FY23, citing greater working prices attributable to inflationary headwinds.

The firm had posted a internet revenue of Rs 1,310.34 crore within the July-September interval a 12 months in the past, UltraTech Cement mentioned in a BSE submitting.

Its income from operations rose 15.61 per cent to Rs 13,892.69 crore through the quarter underneath overview as in opposition to Rs 12,016.78 crore within the corresponding interval of the final fiscal.

UltraTech’s “operating margin dropped significantly to 14 per cent mainly on account of higher energy costs, which increased by 58 per cent YoY and decline in realisation”, the cement maker mentioned in its earnings assertion.

The working value of the corporate has additionally elevated.

During the July-September quarter, UltraTech’s “energy cost increased 58 per cent and the raw material cost rose 18 per cent YoY,” it mentioned.

Raw supplies akin to fly ash, slag and gypsum had an “inflationary increase in cost due to monsoon”, whereas the price of blended gas and Petcoke consumption was up, mentioned the Aditya Birla group agency.

UltraTech’s complete bills had been at Rs 12,934.27 crore, up 26.68 per cent in Q2/ FY23, as in opposition to Rs 10,209.43 crore.

In Q2/FY23 UltraTech’s consolidated gross sales quantity was 23.10 million metric tonnes through the quarter, registering a 7 per cent progress year-on-year.

UltraTech’s home gross sales quantity “grew 9.6 per cent on a year-on-year basis, despite heavy monsoons” via the quarter, it added.

UltraTech, which has a consolidated gray cement capability of 121.25 MTPA (million tonnes every year), elevated its capability utilisation. It achieved “capacity utilisation of 76 per cent as against 71 per cent during Q2FY22,” the assertion mentioned.

Updating the capital expenditure, UltraTech mentioned its first section of progress launched in December 2020 is on monitor and estimated to be accomplished by the top of FY23.

“In the second half of this year, the company will commission another 15.4 MTPA of greenfield/brownfield expansion and start the next financial year with a capacity of 131.25 MTPA in India. Work on the second phase of growth of 22.6 MTPA announced during the first quarter has already commenced,” it mentioned.

Main plant orders have been positioned and civil work began at some websites. Commercial manufacturing from these new capacities is predicted to go on stream in a phased method by FY25, and upon completion, its capability will develop to 159.25 MTPA, it added.

On the outlook, UltraTech mentioned given the federal government’s concentrate on infrastructure spending and reasonably priced housing, the cement sector’s long-term progress potential continues to stay wholesome.

“Demand revival is imminent, especially during the festive season and the January-March peak construction period,” the corporate mentioned.

Shares of UltraTech Cement Ltd closed at Rs 6,397.55 on BSE on Wednesday, up 0.89 per cent from the earlier shut.