Understanding UltraTech’s Q3 Numbers and Performance

India’s largest cement manufacturer, the Aditya Birla Group’s UltraTech Cement, recently announced their Q3FY23 earnings numbers. Higher input costs led to a 37.86% fall in consolidated net profits to Rs1,062.58 crores. During Q3FY22, UltraTech numbers showed counter-current propensities, with net profits of Rs1710.14 crores. However, operating revenues rose by 19.53% to Rs15,520.93 crores, with indigenous grey cement sales volume growing 12% sequentially. The capital output was made more efficient at a capacity utilization of 83%, compared to just 75% in Q3FY22. 

Owing to economic slowdowns and rising crude prices, energy costs skyrocketed by 33% yoy while the costs of raw materials were up 13%. While such slumps were precedented, the cement conglomerate also managed to commission the improvement of energy efficiencies. During the quarter, the company managed to produce 18 MW of power through Waste Heat Recovery Systems (WHRS) and 7 MW of power through solar power. In the process, their share in the green energy space has shot up to 19.8% of the cumulative 208 MW of WHRS and 325 MW of solar power that presently exists in this sector.

Furthermore, UltraTech are also in the midst of their phasal cement capacity expansion. Under Phase 1, UltraTech commissioned a new capacity of 5.5 million tonnes per annum (MTPA), with equal distributions across Pali greenfield cement plant, Dhule greenfield grinding unit and Dhar brownfield unit during Q3FY23. Completion of all phases of this expansion initiative will grow the company’s cement production capacity to 159.25 MTPA, making it the world’s third largest cement-producing company.