UltraTech Cement Q3 FY25 Results: Net Profit Declines 17% but Beats Estimates; Shares Surge 6%
UltraTech Cement, India's largest cement manufacturer, announced its Q3 FY25 results today, reporting a 17 percent year-on-year (YoY) decline in consolidated net profit to Rs 1,470 crore. Despite the drop, the company's performance exceeded market expectations, driven by strong volume growth and cost efficiencies. Following the announcement, UltraTech Cement's shares surged 6 percent, extending pre-result gains.
Key Highlights of UltraTech Cement's Q3 FY25 Results
Financial Performance
UltraTech Cement's consolidated revenue from operations rose nearly 3 percent YoY to Rs 17,193 crore, surpassing the estimated Rs 16,696 crore. The company's EBITDA declined 8 percent YoY to Rs 3,131 crore, but operating EBITDA per tonne for domestic grey cement improved sequentially to Rs 964. Realisation per tonne for grey cement fell 9.6 percent YoY but improved 1.4 percent quarter-on-quarter (QoQ) to Rs 4,970.
Volume Growth
The company reported a 10.5 percent YoY increase in domestic grey cement sales volumes, reaching 28.1 million tonnes. This growth was supported by rural demand recovery and increased infrastructure spending. White cement and ReadyMix Concrete (RMC) volumes also saw robust growth, rising 6 percent and 14 percent YoY, respectively.
Cost Efficiency
UltraTech Cement achieved significant cost reductions in logistics and fuel expenses, driven by shorter lead distances, improved operational efficiencies, and a higher share of green power. The company's green power share increased to 33.4 percent in Q3 FY25, up from 24.1 percent a year ago.
Business Updates
The acquisition of India Cements Limited, effective from December 24, 2024, added 14.45 million tonnes of grey cement capacity. UltraTech's total domestic grey cement capacity is now projected to reach 209.3 million tonnes by FY27.
Regional Trends
Cement demand was primarily driven by the housing and commercial sectors. However, certain regions, such as the South, faced challenges due to extended monsoons and cyclones.
Market Reaction
Following the results announcement, UltraTech Cement's share price jumped nearly 6 percent to Rs 11,333 on the NSE, reflecting investor confidence in the company's performance and future prospects.
Conclusion
Despite a YoY decline in net profit, UltraTech Cement's Q3 FY25 results demonstrate resilience and operational strength. The company's ability to surpass market expectations, coupled with strategic cost efficiencies and volume growth, positions it well for future growth. Investors remain optimistic, as evidenced by the sharp rise in share prices post-announcement.
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