UltraTech Cement releases March quarter results, declares 380% dividend

UltraTech Cement on April 28 announced its March quarter numbers (Q4FY23) as well as declared a final dividend of Rs 38 per share. 

The cement maker reported a 12 per cent rise in its consolidated net profit at Rs 1,666 crore for the quarter ended March 2023 against Rs 1,478 crore profit reported in the year-ago period. Net sales came in at Rs 18,436 crore, up 18.5 per cent against Rs 15,557 crore registered in the year-ago quarter. On a standalone basis, profit after tax (PAT) or net profit stood at Rs 1,650 crore against Rs 1,471 crore logged in the year-ago period. Net sales gained 19.75 per cent YoY to Rs 17,897 crore. The company noted that the PAT excludes extraordinary items being reversal of accumulated provision for tax and MAT credit availed amounting to Rs 983 crore for three months ended March 31, 2023, and Rs 1,518 crore for the year ended March 31, 2022. 

FY23

For the full year, consolidated net sales jumped 21 per cent to Rs 62,338 crore from Rs 51,708 last year. Profit before interest, depreciation and tax was Rs 11,123 crore vis-a-vis Rs 12,022 crore in the corresponding period of the previous year. Profit after tax was Rs 5,064 crore compared to a normalised profit of Rs 5,667 crore (before one-time extraordinary gains) in the corresponding period of the previous year. 

UltraTech further informed the company achieved the unique distinction of registering 100 million tons of production, dispatches and sales in FY23. This was backed by an effective capacity utilisation of 95 per cent during this quarter and 84 per cent capacity utilisation for the year. The company saw an increase in energy cost by 17 per cent YoY and a 4 per cent lower QoQ. Prices of pet coke and coal increased 18 per cent YoY. Raw material cost was up 9 per cent YoY on account of the increase in the cost of fly ash, slag and gypsum etc. 

As regards dividends, the company said, "The Board of Directors at their meeting held today have recommended a dividend of 380 per cent at the rate of Rs 38 per equity share of the face value of Rs 10 per share, aggregating Rs 1,097.01 crore."

CAPEX

UltraTech's expansion program is progressing as per schedule. During the year, the Company commissioned 12.4 mtpa additional capacity of grey cement. It has further commissioned a 2.2 mtpa brownfield cement capacity at Patliputra in April, 23. Work on its next phase of growth of 22.6 mtpa has already commenced. Civil work is in full swing at most sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25/FY26. Upon completion of these expansions, the Company's capacity will grow to 160.45 mtpa, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far. 

In its forward-looking statement, the company said its capital and financial resources remain fully protected and its liquidity position is adequately covered. Most importantly, it continues to remain committed to all its business associates. "Demand for cement across all sectors continues to remain strong which augurs well for the company," the press release said.