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UltraTech Cement, India's largest cement manufacturer, reported a 17 percent year-on-year (YoY) decline in consolidated net profit to Rs 1,470 crore for the third quarter of FY25. Despite the drop in profit, the earnings surpassed analyst expectations, as per a Moneycontrol poll that projected a 26 percent YoY decline to Rs 1,304 crore.

The cement major's consolidated revenue from operations rose nearly 3 percent YoY to Rs 17,193 crore, ahead of the estimated Rs 16,696 crore, driven by volume growth across segments and better price realisations.

Following the results announcement, UltraTech Cement share price jumped further to trade up nearly 6 percent at Rs 11,333 on the NSE, extending the pre-results gains.

Consolidated EBITDA declined 8 percent YoY to Rs 3,131 crore, although operating EBITDA per tonne for domestic grey cement improved sequentially to Rs 964. Realisation per tonne for grey cement fell 9.6 percent YoY but improved 1.4 percent QoQ to Rs 4,970.

Revenue drivers: UltraTech’s domestic grey cement sales volumes grew by 10.5 percent YoY to 28.1 million tonnes, supported by rural demand recovery and infrastructure spending. White cement and ReadyMix Concrete (RMC) volumes also recorded robust YoY growth of 6 percent and 14 percent, respectively.

Cost efficiency: The company reported a reduction in logistics and fuel costs, aided by shorter lead distances, improved operational efficiencies, and a higher share of green power (33.4 percent in Q3 FY25 compared to 24.1 percent a year ago).

Business updates: The acquisition of India Cements Limited, effective from December 24, 2024, added 14.45 million tonnes of grey cement capacity. UltraTech's total domestic grey cement capacity is now projected to reach 209.3 million tonnes by FY27.

Regional trends: The cement demand was driven by the housing and commercial sectors, though certain regions, such as the South, faced headwinds due to extended monsoons and cyclones.

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