Capacity expansion to 135.25 million tons by FY24 end
Debottlenecking will add 4 million tons of grinding capacity, taking total capacity from 131.25 to 135.25 million tons by end of FY24.
ULTRACEMCO / guidance tracker
Keep management guidance in view.
Ultracemco · forward-looking guidance across the available source record.
Research layer active
Guidance tracker
What management said would happen.
expansion
Next phase of expansion to be announced by Q3/Q4 FY24
Board approval for next growth phase expected next quarter, targeting 200 million tons by 2030.
Green energy target of 60% by FY26
Renewable energy capacity to reach 1.2 GW and WHRS to 425 MW by FY26, with 100 MW solar/wind and 68 MW WHRS additions in FY24.
Alternate fuel usage to reach 9-10% by end of next fiscal
Investment of INR 250 crore in shredders and feeding systems to increase alternate fuel usage from 5% to 9-10% by FY25.
Double-digit volume growth for FY25
Management expects UltraTech to achieve double-digit volume growth in FY25, outpacing industry growth of 7-8%.
Cost reduction target of ₹300+ per ton over three years
Management raised the cost reduction target from ₹200-300 to ₹300+ per ton, driven by logistics and WHRS improvements.
Normalized other expenses at ~₹675/ton from Q2
Other expenses per ton should normalize to ~₹675 from ₹755 in Q1, as one-time marketing spends subside.
Petcoke mix to exceed 45% for full year
Petcoke mix in fuel will ramp up from 37% to over 45% for the full year, reducing fuel costs.
Double-digit volume growth in FY26
Management expects consolidated volume growth of over 10% in FY26, driven by new capacities and market demand.
India Cements EBITDA per ton to exceed INR 1,000 by FY28
Targeting EBITDA per ton above INR 1,000 for India Cements by fiscal 2028, up from current INR 400.
Capex of ~INR 10,000 crore in FY26
Capital expenditure for the current fiscal year is expected to be around INR 10,000 crore.
Next phase of organic growth to be announced by end of FY26
The company plans to present the next phase of organic capacity expansion to the board by end of calendar 2025 or fiscal 2026.
Capacity expansion to 159.65 MTPA by mid-2025
The ongoing 24.4 MTPA expansion (including debottlenecking and slag mills) is on track for completion by June 2025 ±, with gradual commissioning.
Third phase of ~20 MTPA expansion to be announced by end of calendar 2023
The next phase of growth will be presented to the board before end of calendar year 2023, targeting completion by calendar 2027.
Fuel inventory to normalize to 45 days by March 2024
Current fuel inventory of 60 days will be reduced to normal levels of 45 days by end of March 2024.
CapEx spend of INR 6,000-7,000 crore for FY24
Full-year capital expenditure is expected to be INR 6,000-7,000 crore, with bulk spending already done in H1.
H2 volume growth expected to be double-digit
Management expects UltraTech to deliver double-digit volume growth in H2 FY25, driven by rural demand and infrastructure pick-up.
Capacity to reach 157 MTPA by March 2025
UltraTech will commission 8 MTPA in H2, taking total capacity to 157 MTPA by end of FY25.
Cost savings of INR 300/ton through efficiency program
Efficiency improvements in WHRS, renewable energy, clinker ratio, fuel mix, and lead distance are expected to deliver INR 300/ton cost savings by FY27.
Kesoram acquisition to close in Q4 FY25
NCLT hearings scheduled for Oct 25 and Nov 12; transaction expected to conclude by Q4 FY25.
Capacity target of 200 MTPA by FY26 end
UltraTech will exit the current financial year with 200 million tons of cement capacity.
Next phase expansion of 22.8 MTPA in North and West
Incremental capacity of 22.8 million tons (18 MTPA North, 4.8 MTPA West) to be completed by FY28-29, largely brownfield.
ICL EBITDA per ton to reach INR 1,000 post expansion
India Cements assets will generate EBITDA per ton of INR 1,000 and net debt/EBITDA of ~0.5x after expansions are operational.
Kesoram EBITDA per ton to cross INR 1,000 by June 2026
Kesoram assets expected to achieve EBITDA per ton of INR 1,100-1,200 by end of June 2026 after WHRS and brand conversion.
Q4 utilization to cross 80%-85%
Management expects capacity utilization to exceed 80%-85% in Q4 FY24, driven by demand recovery from mid-December.
Fuel cost reduction of 6%-8% over two quarters
Fuel costs are expected to decline 6%-8% over the next two quarters (Q4 FY24 and Q1 FY25) from current levels.
CapEx of ~INR 9,000 crore in FY24 and FY25
Capital expenditure will be around INR 9,000 crore each in FY24 and FY25, including growth and maintenance CapEx.
Zero net debt by March 2025 (excluding Kesoram)
The company aims to achieve zero net debt by end of FY25, excluding the INR 2,000 crore debt from Kesoram acquisition.
Double-digit volume growth in FY26
UltraTech expects to grow volumes by over 10% in FY26, driven by capacity expansion and demand recovery.
India Cements turnaround in 12 months
Management aims to improve India Cements' performance to within INR 200-300/ton of UltraTech's EBITDA within 12 months from January 2025.
CapEx of INR 9,000 crore in FY26
Organic CapEx for UltraTech standalone is guided at ~INR 9,000 crore for FY26, tapering to INR 6,000-7,000 crore in FY27.
Fuel cost to decline to ~INR 1.7/kcal
Based on current spot prices, fuel costs are expected to trend down to around INR 1.7 per kcal in the near term.
Q4 FY26 capacity addition of 8-9 million tons
Approximately 8-9 million tons of new capacity will be commissioned in Q4 FY26, part of the ongoing expansion.
FY27 capacity addition of 12 million tons
12 million tons of capacity to be added in fiscal 2027, with the remainder of the 22 million ton phase in FY28.
Net debt/EBITDA to reach 0.89x by end of FY26
Management expects net debt/EBITDA to improve from 1.08x to 0.89x by March 2026, driven by cash flows.
Cable & wires product launch in Q3 FY27
The new cable and wires business is on schedule for product launch in the October-December 2026 quarter.
Cost reduction of INR 200-300 per ton over three years
Target to reduce operating costs by INR 200-300 per ton by FY27 through green power, blending, alternate fuels, and operating leverage.
Fuel cost to reach $130/ton from current $150/ton
Fuel cost expected to decline to $130/ton over the next 3-4 quarters as high-price contracts roll off.
Capacity to reach 199.6 million tons by FY27
UltraTech's total capacity (including UAE) to reach 199.6 million tons by end of FY27, with 15-17 million tons added in FY25.
Net debt target of INR 1,500-2,000 crore by end of FY25
Target to reduce net debt to INR 1,500-2,000 crore (including Kesoram) by end of FY25, with standalone net cash.
Double-digit volume growth in FY26 on like-for-like basis
Management expects organic volume growth of over 10% in FY26, excluding contributions from India Cements and Kesoram.
India Cements EBITDA per ton to cross ₹500 in FY26
India Cements is expected to achieve EBITDA per ton of over ₹500 in the current fiscal year, up from ₹40 in Q4 FY25.
Cost improvement of ₹300+ per ton by FY27
The company targets cost savings of over ₹300 per ton on existing UltraTech operations by the end of FY27, with ₹86 already achieved in FY25.
Capacity expansion to 212M tons by FY27
UltraTech plans to increase total cement capacity to ~212 million tons by FY27, up from 184M tons currently, through ongoing organic capex.
Volume growth of 7-8% per annum sustainable
Management expects sustainable volume growth of 7-8% per annum driven by urbanization, infrastructure, and housing demand.
Double-digit volume growth in FY27
For fiscal 2027, UltraTech targets double-digit volume growth.
Annual capex of ₹8,000-10,000 crore for foreseeable future
UltraTech plans to invest ₹8,000-10,000 crore annually in capex, including expansion beyond 240 million tons.
Cost efficiency program to deliver >₹300 per ton by FY28
The ongoing cost efficiency program is expected to deliver more than ₹300 per ton in savings by fiscal 2028, up from ₹185 already achieved.