How is UltraTech planning to bounce back with new capacity and green energy milestones
The biggest cement manufacturer in India, UltraTech Cement, released its quarterly financial results for the fourth quarter of its fiscal year 2024-25 (Q4 FY25) on April 28, 2025. Even though the company recorded a 9.92% consolidated net profit of ₹2,482.04 crores during the quarter as compared to last year, it is far less than analyst expectations of ₹2,538.4 crore. The decline was attributed to low prices of cement and high operational costs.
Financial Performance Overview
Revenue Growth: The consolidated operational revenue increased by 12.95% YoY to ₹23,063.32 crore from ₹20,418.94 crore in Q4 FY24.
EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 11% YoY to ₹4,721 crore, which was a clear sign of improving operational efficiencies.
Expenses: The total expenses for the quarter were ₹20,044.49 crore, a rise of 8.06% over the corresponding quarter in the previous year.
Operational Highlights
Volume of Sales: The company recorded a consolidated sales volume of 41.02 million tonnes, which is a 17% increase YoY.
Thus, it reported 89% effective capacity utilization for the quarter.
Energy Costs: Energy costs reduced 14% YoY largely due to a reduction in fuel costs, which were at ₹881 per tonne in Q4 FY25 from ₹1,025 per tonne in Q4 FY24.
Strategic Developments
Capacity Expansion: UltraTech commissioned 17.4 mtpa at various places in India during FY25. The category of gray cement increased this capacity from 183.36 mtpa to approximately 188.76 mtpa considering the overseas operations.
Renewable Energy Milestone: The company surpassed a milestone of 1 GW of renewable energy capacity for captive use; one of the first Indian industries to register this achievement.
Dividend Declaration: The Board of Directors wishes to recommend a dividend of ₹77.50 per share of ₹10 each for the year ended March 31, 2025, subject to shareholder approval.
Market Reaction and Outlook
UltraTech Cement’s shares ended down by 1.05% at ₹12,108.25 on the BSE after the earnings announcement.
It is also evident that the company is confident of sustainable 7% to 8% growth in volumes, supported by government infrastructure and housing initiatives, as well as demand from both rural and urban areas. Short- to medium-term disruptions come as adverse weather conditions, particularly high temperatures, are likely to affect construction activities during April and May. Yet, it is long-term positive, given the prospects of the demand projections upholding this positive change.
In summary, despite sharp growth in volumes and solid strategic positioning, UltraTech Cement’s Q4 FY25 results are mixed because of pricing issues and higher costs. Notably, the company’s aggressive expansion and renewable initiatives would give it a good position in terms of growth for the future, but these are not likely to bear soon in the cement industry.
