UltraTech Cement Q4 profit jumps 36%, 700% dividend recommended.
UltraTech Cement reports robust profits, proposes 700% dividend.
UltraTech Cement's financial results for the January to March 2024 quarter showcased a notable growth, with a profit after tax (PAT) of ₹2,258 crore, marking a significant increase from ₹1,666 crore in the corresponding period of the previous year. This 36% surge in profit surpassed CNBC-TV18's estimated projection of ₹2,050 crore. Additionally, the company's revenue for the quarter reached ₹20,419 crore, exceeding the estimated poll figure of ₹19,975 crore by 2%. In comparison, the revenue for the same quarter in the previous fiscal stood at ₹18,662 crore.
The firm's EBITDA for the fourth quarter of the fiscal reached ₹4,114 crore, resulting in a margin rise to 20.1%. Furthermore, UltraTech Cement's Board of Directors recommended a dividend of 700%, translating to ₹70 per equity share of face value ₹10 each, totaling ₹2,020.84 crore. Regarding taxation, the company stated in its exchange filing that the dividend would be taxed in shareholders' hands at applicable rates, with the company withholding tax at source accordingly.
Throughout FY24, the company achieved a volume growth of 13%, with a notable 11% growth in Q4FY24. It also attained a full-year EBITDA per metric ton of ₹1,101.
UltraTech noted a decline in coal and petcoke prices during FY24, resulting in a 13% reduction in imported fuel consumption cost during Q4FY24 compared to Q4FY23, remaining flat quarter-on-quarter. The effective capacity utilization stood at 98% for the quarter and 85% for the full year.
During the fiscal year, UltraTech expanded its grey cement capacity by 13.27 mtpa across various locations. It commissioned greenfield cement capacities in Karur, Tamil Nadu, and Kukurdih, Chhattisgarh, with capacities of 2.7 mtpa each, totaling 5.4 mtpa in April 2024.
In the quarter, the company acquired a 0.54 mtpa cement grinding asset from Burnpur Cement Limited in Patratu, Jharkhand, marking its entry into the state. Additionally, it entered into an agreement to acquire a grinding asset with a capacity of 1.1 mtpa, along with a captive railway siding, in Parli, Maharashtra, from The India Cements Limited.
UltraTech Cement also announced ongoing projects, including a brownfield capacity expansion of 1.2 mtpa at the Parli grinding unit and the expansion of its grinding unit in Dhule, Maharashtra, from 1.8 mtpa to 3.6 mtpa.
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