Strong Financial Performance in Q4FY25
UltraTech Cement, India’s largest cement manufacturer, reported a 10% increase in consolidated net profit for the quarter ending March 31, 2024. The company’s net profit stood at Rs 2,482 crore, surpassing Street estimates of Rs 2,399 crore. In comparison, UltraTech’s net profit for Q4FY24 was Rs 2,258 crore. This growth in profit underscores the company’s strong operational performance despite the challenging market conditions.
Highlights:
Q4FY25 net profit rose 10% to Rs 2,482 crore, beating market expectations.
The company’s net profit for the same quarter last year was Rs 2,258 crore.
Strong profit growth amidst fluctuating market conditions.
Revenue Growth and Operational Highlights
UltraTech’s revenue from operations rose 13% year-on-year to Rs 23,063 crore in Q4FY25, compared to Rs 20,419 crore in Q4FY24. Although the revenue growth was significant, it came in slightly lower than analysts’ estimates of Rs 23,099 crore. The growth in revenue highlights UltraTech’s continued dominance in the Indian cement industry and its ability to generate robust earnings.
Highlights:
Consolidated revenue grew 13% year-on-year to Rs 23,063 crore.
Q4 revenue slightly below brokerage estimates, which were around Rs 23,099 crore.
Strong revenue growth driven by domestic demand and improved sales volume.
Increase in Profitability Metrics
UltraTech’s domestic earnings before interest, taxes, depreciation, and amortization (EBITDA) per tonne, a key metric to gauge profitability, increased to Rs 1,270 in FY25. This marks an increase of Rs 84 per tonne from the previous year, and a notable Rs 305 per tonne growth compared to the October-December quarter of FY25. These improved profitability metrics demonstrate the company’s operational efficiency and effective cost management strategies.
Highlights:
EBITDA per tonne increased by Rs 84 year-on-year to Rs 1,270.
Significant rise of Rs 305 per tonne from the previous quarter.
Improved operational efficiency contributing to higher profitability.
Strategic Acquisitions and Increased Sales Volume
Q4FY25 marked UltraTech’s first full quarter after acquiring India Cements, which became a subsidiary, as well as the completion of the acquisition of Kesoram Industries’ cement business. These strategic acquisitions helped boost UltraTech’s sales volume by 17% year-on-year, reaching 41.02 million tonnes in Q4FY25. The company’s expanded production capacity following these acquisitions contributed significantly to the growth in sales volume.
Highlights:
First full quarter post-acquisition of India Cements and Kesoram Industries.
Sales volume surged by 17% year-on-year to 41.02 million tonnes.
Strategic acquisitions driving growth in production capacity and market reach.
Dividend Declaration
In line with its strong financial performance, UltraTech Cement declared a dividend of Rs 77.5 per share, aggregating to Rs 2,284 crore for the year ended March 31, 2025. The dividend announcement reflects the company’s healthy cash flow and commitment to rewarding its shareholders.
Highlights:
Dividend of Rs 77.5 per share declared, totaling Rs 2,284 crore.
Reflects the company’s solid cash flow and shareholder value focus.
Stock Market Reaction
Following the announcement of its Q4 results, UltraTech Cement’s shares closed 0.9% lower at Rs 12,128 per share on the National Stock Exchange. The company’s results were declared during market hours, which likely contributed to the slight dip in share price despite the positive earnings report.
Highlights:
UltraTech shares closed 0.9% lower at Rs 12,128 after the results.
Stock market reaction likely influenced by timing of results announcement.
