Table of Content
Q3 Business Highlights:
1. Domestic Sales Growth:
- Year-on-year domestic sales volume increased by 5%.
- Capacity utilisation reached 77%.
2. Operational Performance:
- Operating EBITDA/Mt for India Operations stood at ₹1208, marking a significant 34% improvement year-on-year.
- Quarterly improvement of 27% quarter-on-quarter.
3. Profit Milestone:
- Achieved the highest-ever Profit after tax, reaching Rs 1,777 Crs.
- Impressive improvement of 68% year-on-year and 39% quarter-on-quarter.
4. Strategic Expansion:
- Entered Jharkhand through the acquisition of 0.54 mtpa grinding capacity from Burnpur Cement Limited.
5. Green Power Initiatives:
- Green Power Mix increased to 24.1%, showcasing a remarkable 21% year-on-year improvement.
- This mix comprises 16.1% from Waste Heat Recovery System (WHRS) power and 7.9% from Renewable Energy (RE) sources.
6. Rural Sales Growth:
- Rural sales accounted for 64% of trade and experienced a 5% growth in the quarter.
7. Retail Expansion:
- UBS outlets expanded to 3,609, contributing to 26% of trade sales volume.
These Q3 highlights reflect positive trends in sales, profitability, strategic acquisitions, and sustainability efforts, positioning the company for continued success.
Additional Read: Q3 Results Dashboard
Year-on-Year (YoY) Cost Analysis:
1. Overall YoY Costs:
- Costs decreased by 2% year-on-year.
2. Lead Optimization:
- Lead reduced to 397 kms in Q3 FY24 from 413 kms in Q3 FY23.
- Quarter-on-quarter (QoQ) cost remained flat.
3. Lead Reduction (Q3 FY24 vs. Q2 FY24):
- Lead further reduced to 397 kms from 403 kms.
- Attributed to lead optimization and operating efficiencies.
4. YoY Cost Increase (3%):
- Increase in raw material costs, specifically gypsum and slag.
- Clinker conversion ratio maintained at 1.42.
- QoQ cost remained flat.
5. YoY Cost Decrease (16%):
- Blended fuel consumption (CV: 7500) at ~USD 150/t compared to ~USD 200/t in Q3 FY23.
- Pet coke consumption at 44%, compared to 43% in Q3 FY23.
6. YoY Cost Decrease (5%):
- Blended fuel consumption (CV: 7500) at ~USD 150/t compared to USD 162/t in Q2 FY24.
- Pet coke consumption at 44%, compared to 39% in Q2 FY24.
7. YoY Cost Increase (14%):
- Increase in plant maintenance cost.
- QoQ cost decreased by 1%, attributed to the benefit of Operating Leverage and one-time cost in Q2 FY24.
Economic Outlook and Macro Indicators:
1. GDP Growth Projection:
- The overall GDP growth for Fiscal Year 2024 is anticipated at a robust 7.3%.
- This optimistic projection is notably supported by a significant surge in non-agricultural sectors.
2. Industrial Production Growth (IIP):
- In the period of April to November 2023, the Index of Industrial Production (IIP) exhibited a substantial growth of 6.4%.
- This stands in contrast to the 5.6% recorded in the first eight months of the previous fiscal year (FY23).
3. Consumer Price Index (CPI):
- The Consumer Price Index (CPI) witnessed a year-on-year increase, reaching 5.7% in December.
- This shows a slight uptick from the 5.6% recorded in November.
4. Inflation Outlook:
- The anticipated inflation rate stands at approximately 5% for the fourth quarter of FY24.
- When compared to the year-to-date (YTD) average of around 5.5% in December 2023, this projection suggests a moderate inflationary trend.
5. Demand Drivers:
- Pre-election spending and a strategic focus on infrastructure development are expected to persist as key drivers of demand in fiscal year 2024.
- These factors are likely to contribute significantly to economic growth and stability.
Revenues
₹ Crores
| Particulars | Q3 FY24 | Growth (YoY) | Growth (QoQ) |
| Grey Cement – Domestic | 13,989 | 7% | 4% |
| White Cement | 648 | 13% | 11% |
| ReadyMix Concrete (RMC) | 1,293 | 29% | 11% |
| Others | 284 | -20% | -10% |
| Grey Cement – Overseas | 655 | 14% | 9% |
| Total Consolidated Revenues* | 16,487 | 8% | 5% |
Additional Check: UltraTech Cement Limited Share Price
RMC volume grew 28% yoy with 270 plants
Sales Volume
Volume in Million tons
| Particulars | Q3 FY24 | Growth (YoY) | Growth (QoQ) |
| Grey Cement – Domestic | 25.44 | 5% | 1% |
| Cement Export & Clinker Sales | 0.14 | 30% | -12% |
| White Cement | 0.48 | 18% | 14% |
| Sales Volume – India | 26.06 | 5% | 2% |
| Grey Cement – Overseas | 1.38 | 20% | 17% |
| Consolidated Sales Volume* | 27.32 | 6% | 2% |
Financial Statement
₹ Crores
| Consolidated | Particulars | India Operations | ||
| Q3 FY24 | Q3 FY23 | Q3 FY24 | Q3 FY23 | |
| 16,487 | 15,299 | Net Sales ^ | 15,882 | 14,755 |
| 3,395 | 2,462 | EBITDA | 3,288 | 2,340 |
| 262 | 215 | Finance Costs | 237 | 194 |
| 783 | 723 | Depreciation and Amortization | 754 | 694 |
| 580 | 465 | Tax Expenses* | 586 | 462 |
| (2) | 4 | Minority Interest | ||
| 1,777 | 1,058 | PAT * | 1,711 | 990 |
| 223 | 169 | EPS (₹) (basis trailing 12 months) | 218 | 165 |
About UltraTech Cement Limited
UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group, a USD 7.9 billion building solutions powerhouse. It is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India, and the third largest cement producer in the world, excluding China. It has a consolidated capacity of 138.39 Million Tonnes Per Annum (MTPA) of grey cement, and a range of products and services to help customers plan, build and finance their dream homes. UltraTech is also committed to sustainability and social responsibility, and has adopted various initiatives to reduce its carbon footprint and support the communities in which it operates.
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Source – https://www.bseindia.com/xml-data/corpfiling/AttachLive/dde50ca8-60bd-4ae3-86d8-42a536a84ace.pdf
