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%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 57.75

₹ 90.81

 

₹ 36.68

 

Net Margins

8.93%

15.61%

 

6.82%

 

 

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. 

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