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

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.