UltraTech Cement Q3 Results: Profit Soars by 63% while Income Grows Modestly at 8%

UltraTech Cement, one of the leading cement manufacturers in India, recently released its financial results for the third quarter of the fiscal year 2023-2024 (Q3FY24). The company has reported impressive growth in profits, which have surged by a remarkable 63% compared to the previous year. The net profit has soared from INR 1,062.6 crores in the corresponding period last year to an impressive INR 1,774.8 crores this year, showcasing the company’s robust financial performance.

Stellar EBITDA Growth

UltraTech Cement
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UltraTech Cement has also witnessed a significant uptick in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), reflecting strong operational efficiency. The company’s EBITDA has observed a substantial growth of 39.3% during the quarter under review. Rising from INR 2,335.9 crores in Q3FY23 to INR 3,254.6 crores in Q3FY24, UltraTech Cement has demonstrated its ability to generate higher earnings and maintain a healthy financial position.

Moderate Income Growth

While the rise in profitability is remarkable, it is important to note that the growth in UltraTech Cement’s total income has been relatively modest. The company’s revenue has witnessed a modest year-on-year (YoY) increase of only 8% during the quarter. In Q3FY23, the company recorded total income of INR 15,520.9 crores, which has now grown to INR 16,739.9 crores, signifying a year-on-year growth of 8%. It is worth mentioning that, despite the moderate increase, UltraTech Cement continues to consolidate its market presence and remains a key player in the cement industry.

UltraTech Cement Q3FY24 (Consolidated, YoY) Financial Highlights

 

  • Total income increased by 7.9% to reach INR 16,739.9 crores (as per Bloomberg estimates: INR 16,987 crores).
  • Net profit surged by an impressive 67%, amounting to INR 1,774.8 crores (as per Bloomberg estimates: INR 1,818.5 crores).
  • EBITDA witnessed extraordinary growth, reaching INR 3,254.6 crores, a rise of 39.3% (as per Bloomberg estimates: INR 3,305.2 crores).
  • Margin expansion was notable, increasing from 15% to 19.4% (as per Bloomberg estimates: 19.5%).

 

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Market Reaction and Share Performance

Following the announcement of the quarterly results, UltraTech Cement’s shares experienced a notable surge in intraday trading, with prices soaring by up to 2.4% and reaching a peak of 10,128.7. At the time of writing, shares continue to trade positively at 1.3% above the opening price, reaching 10,021.4 at 1:32 PM. Investors are optimistic about the company’s stellar financial performance and its potential to generate consistent value.

 

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UltraTech Cement’s Q3FY24 results have undoubtedly exceeded expectations, with the company achieving remarkable growth in profits and EBITDA. While the income growth may appear moderate, it is crucial to consider the overall positive trajectory UltraTech Cement has maintained in the highly competitive cement industry. This consistent performance instills confidence in investors and reaffirms UltraTech Cement’s position as a market leader. With its robust financial performance and continued commitment to excellence, UltraTech Cement remains poised for future success in the dynamic Indian cement market.

 

Source:ndtvprofit.com

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