UltraTech Cement FY25 Annual Earnings Summary
4 quarters covered · ₹75,955 Cr revenue · ₹6,039 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Realizations declined 2.4% YoY and July prices are 1.5% softer sequentially, with no near-term recovery expected.
Q2 FY25 · highDespite recent price hikes, industry profitability remains low; if demand recovery falters, prices could remain depressed.
Q1 FY25 · mediumOther expenses at ₹755/ton were above normal due to one-time marketing spends; normalization to ₹675/ton is expected but not guaranteed.
Q1 FY25 · mediumIndustry capacity utilization is ~70-76%, and 41 million tons were added in FY24, potentially pressuring pricing power.
Q2 FY25 · mediumIndustry-wide capacity additions of 30 MTPA per year face execution delays, which could impact supply-demand balance.
Q2 FY25 · mediumManagement noted that petcoke sellers are holding inventory, suggesting potential price increases; ocean freight costs could also rise.
Q2 FY25 · mediumCCI approval for India Cements and NCLT approval for Kesoram are pending; any delay could push closure beyond current fiscal.
Q3 FY25 · mediumSupreme Court ruling allowing states to levy taxes on minerals could increase costs, though management sees limited immediate impact.
Q3 FY25 · mediumIndia Cements has low utilization (~57%) and requires significant CapEx; turnaround may take longer than 12 months.
Q3 FY25 · mediumAnalyst flagged potential intense competition in South due to capacity additions; management expects demand to support prices.
Q4 FY25 · mediumManagement noted that extreme heat in April-May 2025 is slowing construction activity, which could affect Q1 FY26 volumes.
Q4 FY25 · mediumUS tariff policies may increase ocean freight costs, impacting input costs for imported coal and petcoke.
What changed through the year
Q1 FY25 · Double-digit volume growth for FY25
Management expects UltraTech to achieve double-digit volume growth in FY25, outpacing industry growth of 7-8%.
Q1 FY25 · 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.
Q1 FY25 · 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.
Q1 FY25 · 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.
Q2 FY25 · 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.
Q2 FY25 · 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.
Q2 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.
Q2 FY25 · Kesoram acquisition to close in Q4 FY25
NCLT hearings scheduled for Oct 25 and Nov 12; transaction expected to conclude by Q4 FY25.
Q3 FY25 · Double-digit volume growth in FY26
UltraTech expects to grow volumes by over 10% in FY26, driven by capacity expansion and demand recovery.
Q3 FY25 · 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.
Q3 FY25 · 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.
Q3 FY25 · 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 FY25 · 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.
Q4 FY25 · 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.
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.
Q4 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.