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Economic Times
10 hours ago
- Business
- Economic Times
UltraTech Q1 net profit jumps 49% on higher sales, meets D-Street estimates
UltraTech Cement may take a call on whether or not to merge India Cements with it by 2027 or 2028, chief financial officer Atul Daga said. ADVERTISEMENT 'First and foremost, it's very important for us to clean up the India Cements' operations, bring it up to speed, which is a turnaround of the company, align people, processes, product, and then we will take a call on whether to merge or not to merge,' Daga said on Monday. India Cements became a subsidiary of UltraTech in late December last year. 'We are fully cognisant of a huge amount of stamp duty that would be involved. Why spend money on that? But if it's worthwhile, perhaps in (20)27 or 28, actually, we will revisit the decision,' Daga told analysts on a call after the company's quarterly Cements achieved a breakeven in terms of earnings before interest, tax, depreciation and amortisation (Ebitda) by March. In April, UltraTech's management said the subsidiary's Ebitda per tonne would hit Rs 500 in the current fiscal 2026, Rs 800 in fiscal 2027 and Rs 1,000 in the following fiscal year. It made Rs 400 per tonne of Ebitda in the quarter ended June 30, after taking into account the limestone royalty of Rs 160 per tonne in Tamil a consolidated level, India Cements made a loss of Rs 132.90 crore for the June quarter compared with a profit of Rs 58.47 crore a year earlier, weighed by an exceptional loss of Rs 123.77 crore due largely to impairment charges. Refinancing of debt helped cut down finance costs to Rs 26.58 crore from Rs 82.36 crore a year earlier. ADVERTISEMENT Given that cement prices have been favourable, India Cements could achieve Ebitda per tonne of Rs 1,000 before fiscal 2028, Daga said. 'Prices holding up obviously could help us achieve our targets earlier. Besides prices, most important is the integration effort. It is people, processes, products, quality, logistics. Everything is getting integrated, which helps us realise our goals,' he there are opportunities for brownfield expansion at India Cements, it will be announced at a later stage, he said. ADVERTISEMENT UltraTech posted a consolidated net profit of Rs 2,226 crore in the first quarter, up 49% on year and in line with market estimates. Its numbers for the quarter include those of Kesoram Industries and India Cements, both of which were not a part of the company a year earlier. While India Cements is independently listed and announced its quarterly earnings last week, the numbers for Kesoram were not separately available. ADVERTISEMENT Consolidated sales increased 13% on year to Rs 21,040 crore, while sales volume rose 9.7% to 36.83 million before interest, depreciation and tax was Rs 4,591 crore, up 44% from a year earlier. Ebitda per tonne rose to Rs 1,198 from 899. At a standalone level, UltraTech made a profit of Rs 2,232 crore on sales of Rs 19,398 crore. Ebitda stood at Rs 4,356 crore. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Business Recorder
a day ago
- Business
- Business Recorder
Higher cement prices help India's UltraTech beat earnings estimates
UltraTech Cement, India's largest cement maker by capacity, posted first-quarter earnings above market expectations on Monday, boosted by higher prices of the construction material. Consolidated net profit, including gains from its India Cements deal in 2024, was 22.26 billion rupees ($258.11 million) - above the 21.56 billion rupees estimated by analysts, on average, according to data compiled by LSEG. Standalone net profit for the three months ended June 30 was up 48% on-year. Cement prices rose about 2% on-year on average in the quarter, according to brokerage Ambit Capital, extending the steady recovery so far this year after last year's slump. Finance chief Atul Daga said in a post-earnings call that cement prices have continued to improve in July, especially in the South Indian markets, which emerged out of a long pricing lull in April. 'Prices have (been) favorably poised in spite of heavy monsoons,' Daga said. The company reported a revenue of 212.75 billion rupees, surpassing analysts' estimates of 200.12 billion rupees. However, its consolidated sales volume growth of 9.7% was near the lower side of the 9.6%-17.5% growth range projected by four brokerages. Heavy rains dampened demand in Maharashtra, Gujarat and Odisha, while geopolitical tensions stalled construction activity in India's northern border states, the company said. India and Pakistan saw their worst clashes in decades in the quarter, following a deadly attack in Indian Kashmir in April. The April-June period is also a seasonally soft quarter for cement companies, as monsoon showers slow construction. The company's dealmaking, such as the acquisition of India Cements and Kesoram's cement business, helped in capacity expansion and shielded its volumes from weather-led volatility, analysts have said. UltraTech shares closed 0.5% higher.
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Business Standard
a day ago
- Business
- Business Standard
UltraTech Cement's profit jumps 49% as volumes, prices grow in Q1FY26
Aditya Birla Group's UltraTech Cement reported a 48.9 per cent year-on-year (YoY) growth in consolidated net profit (attributable to the owners of the parent) for the quarter ending June FY26, reaching ₹2,226 crore, driven by an overall sales volume growth of 9.7 per cent YoY to 36.83 million metric tonnes. The company's grey cement realisations also improved by 2.4 per cent YoY to ₹5,165 per metric tonne (mt), amid an all-India YoY cement price hike of 6 per cent during the quarter. The growth in the company's overall consolidated sales volume during the quarter was further boosted by its acquisitions of Kesoram Industries and India Cements. However, during the company's earnings call on Monday, Atul Daga, Chief Financial Officer of UltraTech Cement, remarked, 'We had gotten used to double-digit growth (in sales volume) just recently, year after year, quarter after quarter, and anything less seems to be slow.' Further, the profit marginally missed the Bloomberg analysts' poll estimate of ₹2,251.03 crore. The company's revenue from operations in Q1 FY26 grew by 13.1 per cent YoY to ₹21,275.45 crore, though it also missed analysts' estimates of ₹21,506 crore. 'We believe our results this quarter demonstrate our ability to adapt to the changing market scenario while delivering on our financial commitments,' Daga said. According to Elara Capital, average pan-India cement prices rose by 3 per cent quarter-on-quarter (QoQ) in Q1 FY26 to ₹377 per bag. The YoY price increase reflects a rebound from Q1 FY25 when prices had declined by about 4 per cent due to the demand being affected by the general elections. In Q1 FY26, prices softened in June 2025 with the onset of the monsoon. The company's total expenses for the quarter stood at ₹18,405.19 crore, up 7.97 per cent YoY. Energy costs for grey cement were lower by 12 per cent YoY to ₹871 per mt, mainly due to reduced fuel prices. The company's logistics cost during the quarter declined by 4 per cent YoY, while power costs dropped by 8 per cent YoY. In Q1 FY26, the company's operating EBITDA per tonne was ₹1,248, up 38.82 per cent YoY. The share of premium products in the company's sales stood at 33.8 per cent, compared to 24 per cent in Q1 FY25. Sequentially, the company's revenue declined by 7.75 per cent and profit by 10.31 per cent. UltraTech increased its grey cement capacity by 3.5 million tonnes per annum (mtpa) in Q1 FY26, bringing its total capacity to 192.26 mtpa. The company aims to grow its grey cement capacity to 197.5 mtpa by the end of FY26. The company spent approximately ₹2,000 crore in capital expenditure during Q1 FY26. The company's consolidated net debt stood at ₹16,340 crore as of June 2025. UltraTech is targeting a double-digit volume growth going forward, driven by new capacity additions, mega infrastructure projects, healthy rural demand, and urban housing activity. 'We will grow higher than the industry,' Daga added. The company's share, listed on the Bombay Stock Exchange, closed at ₹12,574.35 on Monday (July 21).
Reuters
a day ago
- Business
- Reuters
Higher cement prices help India's UltraTech beat earnings estimates
July 21 (Reuters) - UltraTech Cement ( opens new tab, India's largest cement maker by capacity, posted first-quarter earnings above market expectations on Monday, boosted by higher prices of the construction material. Consolidated net profit, including gains from its India Cements ( opens new tab deal in 2024, was 22.26 billion rupees ($258.11 million) - above the 21.56 billion rupees estimated by analysts, on average, according to data compiled by LSEG. Standalone net profit for the three months ended June 30 was up 48% on-year. Cement prices rose about 2% on-year on average in the quarter, according to brokerage Ambit Capital, extending the steady recovery so far this year after last year's slump. Finance chief Atul Daga said in a post-earnings call that cement prices have continued to improve in July, especially in the South Indian markets, which emerged out of a long pricing lull in April. "Prices have (been) favorably poised in spite of heavy monsoons," Daga said. The company reported a revenue of 212.75 billion rupees, surpassing analysts' estimates of 200.12 billion rupees. However, its consolidated sales volume growth of 9.7% was near the lower side of the 9.6%-17.5% growth range projected by four brokerages. Heavy rains dampened demand in Maharashtra, Gujarat and Odisha, while geopolitical tensions stalled construction activity in India's northern border states, the company said. India and Pakistan saw their worst clashes in decades in the quarter, following a deadly attack in Indian Kashmir in April. The April-June period is also a seasonally soft quarter for cement companies, as monsoon showers slow construction. The company's dealmaking, such as the acquisition of India Cements and Kesoram's cement business, helped in capacity expansion and shielded its volumes from weather-led volatility, analysts have said. UltraTech shares closed 0.5% higher. ($1 = 86.2425 Indian rupees)
Time of India
15-06-2025
- Business
- Time of India
Sebi rule: UltraTech must sell 7% in India Cements
CHENNAI/MUMBAI: India Cements' new promoter, UltraTech Cement, will need to sell about 7 per cent of its stake, worth over Rs 667 crore, to meet the minimum public shareholding rules set by the capital market regulator. Tired of too many ads? go ad free now UltraTech currently owns about 82 per cent of India Cements, and the rules mandate that listed companies must have at least 25 per cent of their shares owned by the public. UltraTech's stake went over 75 per cent after an open offer that was triggered when its holdings in India Cements crossed a specific threshold. The open offer for an extra 26 per cent stake to India Cements' public shareholders was oversubscribed, which was rare in such offers. India Cements has until Feb 3, 2026, to ensure enough shares are held by the public. It can do this through a secondary share sale, preferential allotment, rights issue, or bonus issue. If it chooses rights or bonus issues, UltraTech will need to give up its rights to buy those shares. Currently, India Cements shares are trading at Rs 333 each, making the 7 per cent stake worth Rs 667 crore. An UltraTech spokesperson said according to Sebi regulations, at least 25 per cent of India Cements' equity must be held by the public within 12 months after the open offer ends, which was on February 4 of this year. "UltraTech will ensure compliance within the stipulated timeline." Data from Prime Infobase showed that in FY25, more than a dozen companies saw promoter holdings drop from over 75 per cent to 75 per cent or less. These companies include Sanghi Industries under Adani Group, Aditya Birla Sun Life AMC, Bikaji Foods International, and Cello World. UltraTech, part of the Aditya Birla conglomerate, took control of the loss-making India Cements in the Christmas of 2024. Tired of too many ads? go ad free now It paid Rs 9,060 crore for the acquisition, which expanded UltraTech's reach in the growing southern market. During its earnings call in April, UltraTech CFO Atul Daga shared that India Cements reached Ebitda breakeven in the first quarter after its takeover. It also sold over one million metric tons of cement in March, which he called a "second case of sweet success." Starting in April, with prices rising in the southern market, he believes this will lead to even better results for the company. In FY26, India Cements aims to surpass Rs 500 in Ebitda per metric ton. By FY27, it expects to cross Rs 800, and then hit a four-digit figure.
