UltraTech Cement's Quarter: Mixed Results Amid Expansion

UltraTech Cement reported a net profit drop for the September quarter 2024-25 compared to the previous year. Despite increasing sales volume, the company faced revenue challenges due to lower price realizations. Expansion efforts, including potential acquisitions, aim to boost capacity in the competitive cement sector.

UltraTech Cement, part of the Aditya Birla Group, reported a consolidated net profit of Rs 825.18 crore for the September 2024-25 quarter, down from Rs 1,280.38 crore in the corresponding period last year. The revenue stood at Rs 15,634.73 crore, indicating a year-on-year decrease.

The company highlighted that its results were not directly comparable due to acquiring a majority stake in Ras Al Khaimah Co. for White Cement & Construction Materials PSC, making it a subsidiary. This expansion reflects UltraTech's ongoing strategy in the competitive cement industry against firms like Ambuja Cements.

Despite growth in sales volume, UltraTech faced pricing challenges and rising raw material costs but reported lower energy expenses. The company's widespread growth strategy aims to match the increasing demand driven by infrastructure spending and urban housing development in India.

(With inputs from agencies.)