UltraTech overcomes fuel cost shock to beat Q1 revenue, profit estimates
Mumbai: UltraTech Cement Ltd weathered one of the sharpest fuel cost shocks in recent years to post a better-than-expected April-June quarter, beating analyst estimates on
Mumbai: UltraTech Cement Ltd weathered one of the sharpest fuel cost shocks in recent years to post a better-than-expected April-June quarter, beating analyst estimates on both revenue and profit. Robust cement demand, double-digit volume growth, contributions from acquired businesses, and disciplined cost management helped India’s largest cement maker offset higher fuel and freight costs. The Aditya Birla Group company’s consolidated net profit attributable to owners rose nearly 17% year-on-year (y-o-y) to ₹2,599 crore in the April-June quarter, comfortably exceeding the Bloomberg consensus estimate of ₹2,476 crore based on a poll of 23 analysts. Quick answers to key questions • 5 QUESTIONS 1 What was UltraTech Cement's consolidated net profit for Q1 FY27? ⌵ UltraTech Cement's consolidated net profit for Q1 FY27 was ₹2,599 crore, marking a nearly 17% increase year-on-year. 2 How did UltraTech Cement manage to beat revenue estimates in Q1 FY27 despite rising costs? ⌵ UltraTech Cement overcame rising costs through robust cement demand, double-digit volume growth, contributions from acquired businesses, and disciplined cost management. 3 What factors contributed to the increase in UltraTech Cement's revenue for Q1 FY27? ⌵ The increase in UltraTech Cement's revenue for Q1 FY27 was attributed to strong domestic sales volumes, which rose 13.1% year-on-year, and a revenue growth of 16% year-on-year to ₹24,648 crore.
4 What is the current capacity utilization of UltraTech Cement for its domestic operations? ⌵ UltraTech Cement's current capacity utilization for its domestic operations stands at 81% on an installed capacity of 200.1 million tonnes per annum. 5 Why does UltraTech Cement anticipate a softer September quarter? ⌵ UltraTech Cement anticipates a softer September quarter due to the expected seasonal monsoon slowdown and the cost effects of disruptions in West Asia. Also Read | UltraTech tightens grip on volumes, costs as pricing revival awaited Likewise, revenue from operations rose 16% y-o-y to ₹24,648 crore during the quarter, beating the Bloomberg consensus estimate of ₹24,107 crore based on a poll of 24 analysts. At a post-earnings call with analysts on Monday, UltraTech chief financial officer (CFO) Atul Daga said the company entered FY27 with a robust capacity base, backed by double-digit volume growth and strong demand from infrastructure, housing and urban real estate. Despite its market leadership, he said the company would continue to grow “like a challenger”. UltraTech’s domestic sales volumes rose 13.1% y-o-y to 39.2 million tonnes (mt) during the quarter. Capacity utilization stood at 81% on an installed domestic capacity of 200.1 million tonnes per annum.
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