UltraTech Cement — Q1 FY24

UltraTech Cement reported strong operational performance in Q1 FY24, with capacity utilization reaching 90% and volumes growing double-digits. The company commissioned 4.3 million tons of capacity, taking total capacity to 131.25 million tons, and identified debottlenecking opportunities for an additional 4 million tons by year-end. Fuel costs declined to $178/ton (from $194/ton QoQ), and management expects further improvement as lower petcoke prices flow through. Green energy initiatives are on track, targeting 60% green energy by FY26. Demand remains robust across regions, with price increases seen in North and West. Risks include potential price pressure in Eastern India due to new capacity and volatile fuel costs. Management is confident of continued market share gains and margin expansion.