Jobaaj Stories
Cement giant Ultratech published disappointing results for FY23 as the company’s consolidated profits fell 31% annually as higher energy, freight, and materials costs dragged down the cement maker’s profits.
For the fourth quarter of FY23, the total income reported a growth of 18.4%, growing from Rs 15,859.67 crores to Rs 18,783.89 crores during the quarter that ended in March 2023. However, profits declined annually as the figure stood at Rs 1,670.10 crores, down 36% YoY but up 57% when compared to Rs 1,062.58 crores reported in the December 2022 quarter.
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For FY23, the company’s revenues surged 20% as Total income for the year crossed the Rs 60,000 crore mark as the figure for the year was Rs 63,743.06 crores. The company achieved 100 million tonnes of production during the year as effective utilization of capacity was 84% during the year with volumes growing 15%.
However, the expenses recorded during the year were significantly higher during FY23. The cost of raw materials jumped 26%, power and fuel expenses were up 52%, while the cost of freight surged 20% during the year, wiping out the growth in revenues. As such, total expenditure grew 26% to Rs 56,331 crores.
As a result of such higher costs, the profits of the company fell 31% YoY to Rs 5,073.40 crores from Rs 7,334.26 crores reported during FY22.
The company has also stated that all of its proposed expansion plans are on track as production is expected to begin from FY25/26 in these facilities. After the completion of these facilities, the company’s production capacity is expected to grow to 160 MTPA, solidifying the company’s position as India’s largest cement company further.
For FY23, the Board of the business has recommended a dividend of Rs 38 per share. Shares of Ultratech closed at Rs 7,556.20 per share on Friday.
- Aman Agarwal
