UltraTech Cement Management Guidance Tracker

Debottlenecking will add 4 million tons of grinding capacity, taking total capacity from 131.25 to 135.25 million tons by end of FY24.

Board approval for next growth phase expected next quarter, targeting 200 million tons by 2030.

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.

UltraTech's total capacity (including UAE) to reach 199.6 million tons by end of FY27, with 15-17 million tons added in FY25.

UltraTech will commission 8 MTPA in H2, taking total capacity to 157 MTPA by end of FY25.

UltraTech plans to increase total cement capacity to ~212 million tons by FY27, up from 184M tons currently, through ongoing organic capex.

The company plans to present the next phase of organic capacity expansion to the board by end of calendar 2025 or fiscal 2026.

Incremental capacity of 22.8 million tons (18 MTPA North, 4.8 MTPA West) to be completed by FY28-29, largely brownfield.

Approximately 8-9 million tons of new capacity will be commissioned in Q4 FY26, part of the ongoing expansion.

12 million tons of capacity to be added in fiscal 2027, with the remainder of the 22 million ton phase in FY28.

The new cable and wires business is on schedule for product launch in the October-December 2026 quarter.

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.

Investment of INR 250 crore in shredders and feeding systems to increase alternate fuel usage from 5% to 9-10% by FY25.

Management expects capacity utilization to exceed 80%-85% in Q4 FY24, driven by demand recovery from mid-December.

Management expects UltraTech to achieve double-digit volume growth in FY25, outpacing industry growth of 7-8%.

Management expects UltraTech to deliver double-digit volume growth in H2 FY25, driven by rural demand and infrastructure pick-up.

UltraTech expects to grow volumes by over 10% in FY26, driven by capacity expansion and demand recovery.

Management expects organic volume growth of over 10% in FY26, excluding contributions from India Cements and Kesoram.

Management expects consolidated volume growth of over 10% in FY26, driven by new capacities and market demand.

UltraTech will exit the current financial year with 200 million tons of cement capacity.

Management expects sustainable volume growth of 7-8% per annum driven by urbanization, infrastructure, and housing demand.

For fiscal 2027, UltraTech targets double-digit volume growth.

Current fuel inventory of 60 days will be reduced to normal levels of 45 days by end of March 2024.

The company aims to achieve zero net debt by end of FY25, excluding the INR 2,000 crore debt from Kesoram acquisition.

Target to reduce net debt to INR 1,500-2,000 crore (including Kesoram) by end of FY25, with standalone net cash.

NCLT hearings scheduled for Oct 25 and Nov 12; transaction expected to conclude by Q4 FY25.

Management aims to improve India Cements' performance to within INR 200-300/ton of UltraTech's EBITDA within 12 months from January 2025.

Management expects net debt/EBITDA to improve from 1.08x to 0.89x by March 2026, driven by cash flows.

Full-year capital expenditure is expected to be INR 6,000-7,000 crore, with bulk spending already done in H1.

Capital expenditure will be around INR 9,000 crore each in FY24 and FY25, including growth and maintenance CapEx.

Organic CapEx for UltraTech standalone is guided at ~INR 9,000 crore for FY26, tapering to INR 6,000-7,000 crore in FY27.

Capital expenditure for the current fiscal year is expected to be around INR 10,000 crore.

UltraTech plans to invest ₹8,000-10,000 crore annually in capex, including expansion beyond 240 million tons.

Fuel costs are expected to decline 6%-8% over the next two quarters (Q4 FY24 and Q1 FY25) from current levels.

Target to reduce operating costs by INR 200-300 per ton by FY27 through green power, blending, alternate fuels, and operating leverage.

Fuel cost expected to decline to $130/ton over the next 3-4 quarters as high-price contracts roll off.

Management raised the cost reduction target from ₹200-300 to ₹300+ per ton, driven by logistics and WHRS improvements.

Other expenses per ton should normalize to ~₹675 from ₹755 in Q1, as one-time marketing spends subside.

Petcoke mix in fuel will ramp up from 37% to over 45% for the full year, reducing fuel costs.

Efficiency improvements in WHRS, renewable energy, clinker ratio, fuel mix, and lead distance are expected to deliver INR 300/ton cost savings by FY27.

Based on current spot prices, fuel costs are expected to trend down to around INR 1.7 per kcal in the near term.

India Cements is expected to achieve EBITDA per ton of over ₹500 in the current fiscal year, up from ₹40 in Q4 FY25.

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.

Targeting EBITDA per ton above INR 1,000 for India Cements by fiscal 2028, up from current INR 400.

India Cements assets will generate EBITDA per ton of INR 1,000 and net debt/EBITDA of ~0.5x after expansions are operational.

Kesoram assets expected to achieve EBITDA per ton of INR 1,100-1,200 by end of June 2026 after WHRS and brand conversion.

The ongoing cost efficiency program is expected to deliver more than ₹300 per ton in savings by fiscal 2028, up from ₹185 already achieved.