The company’s operating margin dropped to 15% in Q3 from 19% in the year-ago period but was up 100 bps sequentially. Volume growth was strong during the quarter but cost pressures resulted in subdued margins.
UltraTech said its domestic grey cement sales volume rose 13% YoY and 12% QoQ, respectively. Energy and raw material costs were up 33% and 13% YoY, while they remained flat on a sequential basis.
The cement major achieved capacity utilisation of 83% last quarter as against 75% during Q3 FY22.
“Given the government’s focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years,” the management said in an exchange filing.
In the second phase of capacity expansion plan of 22.6 MTPA announced during Q1, the company said work has already commenced.
“Main plant orders have been placed and civil work started at most sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25. Upon completion of these expansions, the company’s capacity will grow to 159.25 MTPA, reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far,” it said. In the white cement segment, UltraTech now has a wall care putty capacity of 13 lakh TPA after the third Birla White wall care putty plant at Nathdwara, Rajasthan, with a capacity of 4 lakh TPA was commissioned during the quarter. “Along with its existing white cement manufacturing capacity in India and its investment in Ras Al Khaimah Company for White Cement and Construction Material, UAE, Ultra Tech is strategically positioned to cater to the white cement and wall care putty market in the country,” the company said.
