28 April 2023 12:45 PM GMT

Company Review

Top Indian Companies: UltraTech Cement Ltd

Myfin Desk

Top Indian Companies: UltraTech Cement Ltd


UltraTech is the largest manufacturer of grey cement, ready-mix concrete and white cement in India

UltraTech Cement Limited is an Indian cement company based in Mumbai, and a part of Aditya Birla Group.

UltraTech is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India with an installed capacity of 116.75 million tonnes per annum.

It is the only company in the world to have a capacity of over 100 million tonnes in a single country, outside of China.

UltraTech Cement has 23 integrated plants, 1 clinkerisation plant, 26 grinding units and 7 bulk terminals. Its operations span across India, UAE, Bahrain and Sri Lanka.

In the white cement segment, UltraTech goes to market under the brand name of Birla White. It has a white cement plant with a capacity of 0.68 MTPA and 2 WallCare putty plants with a combined capacity of 0.85 MTPA.

With 100+ Ready Mix Concrete (RMC) plants in 39 cities, UltraTech is the largest manufacturer of concrete in India. It is a Nifty 50 company with a weightage of 1.16% on the index.

Mergers and acquisitions

2013 - Acquired Jaypee Group's Gujarat cement unit for ₹3,800 cr. 2017 - Acquired Jaiprakash Associates's six integrated cement plants for ₹16,189 cr.

2018 - Entered into a scheme of arrangement with Century Textile and Industries to demerge Century's cement business into ultratech

Nov 2018 - Acquired Binani Cement for ₹7,266 cr.

Shareholding Pattern

Holder's Name No of Shares % Share Holding

No of Shares 288664987 100%

Promoters 170338945 59.01%

Foreign Institutions 45443233 15.74%

Banks/Mutual Funds 29203719 10.12%

Central Govt 133376 0.05%

Others 10059953 3.48%

General Public 15931717 5.52%

Financial Institutions 14519112 5.03%

Foreign Promoter 2744168 0.95%

GDR 290764 0.1%

FY23 Q4 and Full Year Reports

UltraTech Cement on Friday reported a 36.1 per cent decline in its consolidated net profit to Rs 1,670.10 crore for the fourth quarter ended March 2023, mainly due to an increase in input cost

The company had posted a net profit of Rs 2,613.75 crore in the January-March period a year ago, UltraTech Cement said in a BSE filing.

However, its revenue from operations rose 17.72 per cent to Rs 18,562.38 crore during the quarter under review against Rs 15,767.28 crore in the year-ago period.

UltraTech's total expenses in Q4 FY23 increased 19.76 per cent to Rs 16,292.95 crore from Rs 13,604.20 crore a year ago.

The total income in the March quarter surged 20.71 per cent to Rs 18,783.59 crore.

During the quarter, "the company saw an increase in energy cost by 17 per cent YoY (year-on-year) and 4 per cent lower QoQ (quarter-on-quarter). Prices of pet coke and coal increased 18 per cent YoY. Raw material cost was up 9 per cent YoY on account of increase in the cost of fly ash, slag and gypsum etc," UltraTech said in its earning statement.

In the fourth quarter, UltraTech's domestic sales grew 15 per cent with a capacity utilisation of 95 per cent.

Ultratech's total consolidated sales volume in the March quarter rose 14 per cent to 31.7 million metric tonnes.

For the financial year ended March 2023, UltraTech's net profit declined 30.82 per cent to Rs 5,073.40 crore. It was Rs 7,334.26 crore in FY22.

Its revenue for operation in FY23 increased 20.23 per cent to Rs 63,239.98 crore against Rs 52,598.83 crore a year ago.

"UltraTech achieved the unique distinction of registering 100 million tonnes of production, dispatches and sales in FY23. This was backed by an effective capacity utilisation of 95 per cent during this quarter and 84 per cent capacity utilisation for the year," it said.

Meanwhile, in a separate filing, UltraTech informed that its board in a meeting held on Friday recommended a dividend of Rs 38 per equity share of Rs 10 each for the year ended March 31, 2023.

UltraTech said its capital and financial resources remain fully protected, and its liquidity position is adequately covered.

Over the outlook, UltraTech said, "Demand for cement across all sectors continues to remain strong, which augurs well for the Company".

Share of UltraTech Cement Ltd on Friday settled at Rs 7,554.60 apiece on BSE, up 0.71 per cent from the previous close.

Brokerage Outlook

The upcoming capacities of 19.5MTPA would help UTCEM to encash the prolonged cement demand and drive the strong volume growth by FY23E. For FY22/23E, Brokerage, Yes Securities, have lowered our volume est. by ~6/7% respectively, due to unexpected demand slowdown during 2Q-3QFY22, but Yes Securities believe the volume would continue to grow by ~4/9/10% in FY22/23/24E.

ESG and Sustainability

Targets Project:

JAL Project: Green power Project: Biodiversity 7 25% direct CO2 intensity reduction over FY06 Current direct CO2

1- Adopted internal carbon pricing

2. Achieved doubling energy productivity target under #EP100 program


Reduce CO emission intensity by 25%

Ensure access to affordable, reliable, sustainable and modern energy for all

* Scaling up share of renewable energy-based electricity

* Installed 59 MW of Waste Heat Recovery based power plants SDG13: Take urgent action to combat climate change and its impacts Ÿ Signatory to EP100 with a commitment to double our energy productivity in the next 25 years

* Target to reduce carbon emission intensity

* Integrated the low carbon strategy into our business roadmap.