Q2 2025 UltraTech Cement Ltd Earnings Call Transcript
Key Points
- UltraTech Cement Ltd (BOM:532538) reported a 3% growth in volume terms despite challenging conditions such as monsoons and pre-election slowdowns.
- The company is on track with its expansion projects, expecting to add 8 million tonnes of capacity in H2, reaching 157 million tonnes by the end of fiscal '25.
- Fuel costs have decreased, with pet coke ratios increasing to 54% and rupees per kcal dropping to INR1.84, an 8% decline QoQ.
- The company has a strong focus on efficiency improvement programs, including increasing WHRS and renewable energy capacities, which are expected to deliver cost savings.
- UltraTech Cement Ltd (BOM:532538) has a diversified presence across India, which helps mitigate regional market fluctuations and supports consistent brand positioning.
- Capacity utilization was at 68%, indicating underutilization due to external factors like intense monsoons.
- Employee costs saw a significant 24% QoQ increase due to one-time bonuses, impacting overall expenses.
- EBITDA per tonne is at a multi-year low, raising concerns about profitability amidst rising costs.
- The company faces potential indirect impacts from global events, such as increased ocean freight costs.
- There are ongoing regulatory processes for acquisitions, such as India Cements, which could delay integration and realization of synergies.
Ladies and gentlemen, good day and welcome to the UltraTech Cement Limited Q2 FY25 earnings conference call.
We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risk that the company faces. The company assumes no responsibility to publicly amend, modify, or revise any forward-looking statement on the basis of any subsequent development, information, or events or otherwise.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Atul Daga, CFO of the company. Thank you, and over to you, Mr. Daga.
Thank you. Good evening, everybody, and welcome to this earnings call today. This quarter, I believe, has turned out as expected; pre-election slowdown followed by a slowdown in April, June, with elections and then monsoons, which have been intense in most parts of the country and also the longer duration of
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