UltraTech Cement Expands UP Capacity; Q3 Profit Jumps 27%

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AuthorAnanya Iyer|Published at:
UltraTech Cement Expands UP Capacity; Q3 Profit Jumps 27%
Overview

UltraTech Cement has commissioned 2.7 MTPA of new grinding capacity at its Aligarh unit, increasing Uttar Pradesh operations to 13.1 MTPA. This expansion pushes the company's total domestic capacity to 191.36 MTPA. The move aligns with UltraTech's growth strategy in high-demand markets. These developments follow a robust Q3 performance, which saw net profit surge 27% year-on-year to ₹1,729.4 crore, driven by strong sales volumes and improved margins.

The expansion at Aligarh is designed to meet rising demand in a key growth region. UltraTech Cement's move to add 2.7 MTPA grinding capacity brings the Aligarh facility's total to 4 MTPA and reinforces its dominant position in Uttar Pradesh, now standing at 13.1 MTPA. This strategic enhancement is crucial for optimizing logistics and market reach, reflecting the company's commitment to servicing high-demand markets efficiently.

Strategic Capacity Expansion

This latest commissioning is part of a broader growth blueprint aimed at strengthening UltraTech Cement's footprint. The company's total domestic grey cement manufacturing capacity now stands at an impressive 191.36 MTPA. Globally, including its 5.4 MTPA overseas operations, UltraTech Cement's capacity reaches 196.76 MTPA, positioning it as a significant player worldwide. The firm also recently commissioned 1.8 MTPA in Maharashtra and Rajasthan, signaling a sustained push for expansion.

Strong Financial Performance

The capacity expansion comes on the heels of a strong third-quarter earnings report. UltraTech Cement posted a 27% year-on-year jump in net profit, reaching ₹1,729.4 crore. This performance, despite a one-time exceptional expense of ₹88 crore related to the new labor code, highlights operational strength. Operating revenue climbed 23% to ₹21,830 crore, with EBITDA surging 35.2% to ₹3,915 crore, leading to improved margins of 17.94%. Consolidated cement sales volumes saw a 15% year-on-year increase, with domestic grey cement markets showing a remarkable 29.4% growth. Capacity utilization rose to 77%, underscoring efficient operations.

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