Ultratech Q4FY23 PAT lower by -32.3% to Rs1,666 crore as power, coking coal and freight costs pinch hard
Ultratech Cement reported 18.36% higher net revenues for the March 2023 quarter at Rs18,662 crore. The revenues were up 20.24% on a sequential basis. In FY23, Ultratech recorded 100 million tonnes out of production and dispatch for the first time ever. The capacity utilization stood at 95% in the fourth quarter and 84% for the year overall.
Despite these advantages, the costs went up quite sharply and that resulted in depressing the profits of the company on a yoy basis. For instance, energy costs were up 17% yoy while the prices of pet coke and coal were up 18% yoy, leading to a spike in raw material costs. The cost spike in fly ash, gypsum and slag also contributed to the spike in raw materials.
Financial highlights for Mar-23 compared yoy and sequentially
| Ultratech | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 18,662 | ₹ 15,767 | 18.36% | ₹ 15,521 | 20.24% |
| Net Profit (Rs cr) | ₹ 1,666 | ₹ 2,461 | -32.29% | ₹ 1,058 | 57.43% |
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| Diluted EPS (Rs) | ₹ 57.75 | ₹ 90.81 |
| ₹ 36.68 |
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| Net Margins | 8.93% | 15.61% |
| 6.82% |
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The sharp fall in profits on a yoy basis can be attributed to this spike in operating costs. More reflective is the spike in profits on a sequential basis at 57.4%. During the year, Ultratech 12.4 MTPA of additional grey cement capacity and a 2.2 MTPA brownfield plant. Its next phase by FY26 will entail 22.6 MTPA expansion of cement capacity. The company has also declared a dividend of Rs38 per share.
