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Revenue
₹16,012 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
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Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
UltraTech Cement reported strong domestic volume growth of 15% YoY in Q2 FY24, despite erratic monsoons, with overall growth including international at 16%. The company maintained a 75% capacity utilization on 132 MTPA base. Fuel costs declined meaningfully, with blended consumption at $162/ton vs $178/ton last year, though management cautioned against annualizing savings due to volatile pet coke and coal markets. Pricing improved 5-7% from June exit across most regions, with current prices holding steady. The 24.4 MTPA expansion (including debottlenecking and slag mills) is on track for completion by mid-2025, targeting 159.65 MTPA. A third phase of ~20 MTPA will be presented to the board by end of calendar 2023. Key risk: fuel cost volatility from geopolitical disruptions could reverse margin gains.
Colored figures show movement against the previous available record.
Guidance to track
- The ongoing 24.4 MTPA expansion (including debottlenecking and slag mills) is on track for completion by June 2025 ±, with gradual commissioning.
- The next phase of growth will be presented to the board before end of calendar year 2023, targeting completion by calendar 2027.
- Current fuel inventory of 60 days will be reduced to normal levels of 45 days by end of March 2024.
- Full-year capital expenditure is expected to be INR 6,000-7,000 crore, with bulk spending already done in H1.
Risks flagged
- Management highlighted that fuel markets are very volatile due to geopolitical issues, making cost predictions difficult.
- While prices have increased 5-7% from June exit, management noted that if some companies cannot sell at higher prices, they may start pricing differently, threatening price discipline.
- Analyst raised concern about steep slag inflation, with slag potentially more expensive than clinker. Management confirmed these are key raw material cost items but did not quantify impact.
- East India continues to experience slow demand, with industry growth expected at only 4-5% vs. 9-11% all-India, though UltraTech grew faster.
Key quotes
- Cement is not for the weak-kneed people. Go anywhere in the world, it's a long-term story, connected to the fundamentals of the economy.
- Don't annualize the cost. That's the message which I tried to give in the beginning of the call. Don't annualize the cost or any number.
- When we give out our plans, it'll be with nuts, screws, and bolts, everything stitched together. You will know where our capacity is coming, how much capacity is coming, unlike some figment of imagination.
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