UltraTech Cement Jan-25

• Investor Presentation for the quarter ended December 31st, 2024, from UltraTech Cement Limited

Macro and Sectoral Update

• NSO estimates real GDP growth at 6.4% for FY25, increasing to 6.8% in H2 compared to 6.0% in H1.
• India's CPI inflation decreased to 5.22% in December from 5.48% in November.
• Private consumption drives growth at 7.3% yoy in current fiscal year, compared to 4.0% in the last, spurred by rural recovery due to agriculture.
• Repo rate remains at 6.5% for the eleventh consecutive meeting; CRR slashed by 50 bps to 4%.
• Housing segment registered growth in both rural and urban areas in the North.
• Infrastructure segment registered degrowth on account of pollution control measures taken in Delhi and surrounding regions.
• Commercial segment registered overall growth in the North.
• Housing segment registered growth across regions except Prayagraj in the Central Zone.
• Infrastructure segment demand was supported by various NHAI projects like Jabalpur Ring Road, Prayagraj railway station and the Boras Dam.
• Housing segment shows strong growth across regions except Odisha in the East.
• Infrastructure segment demand was stable although elections in Jharkhand had an impact.
• Commercial segment registered growth across the region.
• Housing segment registered growth in both rural and urban areas in the West.
• The infrastructure registered degrowth in Maharashtra due to lower fund flows.
• Commercial segment registered strong growth in the West across all regions.
• Housing registered slow growth due to cyclone impact in Tamil Nadu, some parts of Telangana and Andhra Pradesh in the South.

Business Update

• Domestic sales volume grew 10.5% yoy and 9% qoq.
• Trade volume grew 12.5% yoy and rural sales volume grew 13% yoy.
• Domestic operating EBITDA/Mt of ₹ 964, higher by ₹ 232/Mt qoq.
• India Cements Limited (ICEM) became a subsidiary, effective December 24th, 2024, with a grey cement capacity of 14.45 mtpa.
• Green Power Mix stands at 33.4%, with WHRS power mix at 19.9% and RE Power Mix at 13.5%.
• Premium product mix is up to 26.5%, a 15% yoy increase.
• UBS outlets increased to 4,432, contributing 19.5% of domestic grey sales volume.
• There are 348 ReadyMix Concrete plants across India.
• ReadyMix Concrete volume is 3.17 million cubic meters, an increase of 14% YoY.
• ReadyMix Concrete revenue is ₹1,469 Crores, up 14% YoY.
• ReadyMix Concrete ROCE% is 40%.
• Trade sales make up 65.4% and Non-Trade sales are 34.6%.
• Bag sales constitute 81.9% and bulk sales are 18.1%.
• Road transport accounts for 74% of sales, with the remaining coming rail (24%) and sea (2%) with the remaining being.
• Direct sales account for 58.9% while depot sales constitute 41.1%.
• Capacity additions in FY25 (excluding Bulk Terminal) amount to 15.7 Mtpa.
• Capacity addition in FY26 and FY27 is projected to be 26.5 Mtpa.
• UltraTech's grey cement capacity in India is 140.8 Mtpa.
• UltraTech is spread over 82 locations across the country by FY27.
• The financials of Kesoram Cement consolidate with UltraTech with a retrospective effect from April 1st, 2024.
• UltraTech acquired a non-controlling financial stake (8.42% of equity share capital) in Star Cement Limited for ₹776 Crs.
• UltraTech's capacity in the southern states post acquisitions totals 49.85 Mtpa.

ESG Update

• During the quarter, the Company helped 50,000+ people, meet their essential water needs in Andhra Pradesh
• The company expects a Scope 1 Net CO₂ Emission [kg CO₂/t cement] of 551* in 9M FY25

Financial Performance

• Grey Cement - Domestic Q3 FY25 sales were 28.10 Million tons with 10.5% growth.
• Cement Export Q3 FY25 sales were 0.20 million tons with 41% yoy growth.
• White Cement domestic Q3 FY25 sales were 0.51 million tons with 6% yoy growth.
• Overseas Q3 FY25 sales were 1.78 million tons with 29% yoy growth.
• Consolidated Sales Volume Q3 FY25 was 30.37 million tons with 11% growth.
• Readymix Concrete Q3 FY25 sales were 3.17 million tons with 14% growth.
• Revenue from Grey Cement - Domestic in Q3 FY25 was ₹13,969 Crores, a -0.1% growth YoY and 11% growth.
• Revenue from Cement Export in Q3 FY25 was ₹76 Crores, a 37% increase.
• Revenue from White Cement in Q3 FY25 was ₹641 Crores, a -1% decrease.
• Revenue from Ready Mix Concrete (RMC) in Q3 FY25 was ₹1,469 Crores, a 14% increase.
• Overseas revenue in Q3 FY25 was ₹884 Crores, a 35% increase.

Profitability

• EBITDA for Q3FY25 was ₹3,131 Crores, representing a -8% YoY change, but indicated a QoQ increase of 40%.
• PAT for Q3FY25 was ₹1,470 Crores, showing -17% YoY change, with QoQ increase of 79%.
• Realisation declined 9.6% yoy and improved 1.4% qoq..

Key Cost Indicators (Grey Cement): Q3 FY25

• Logistics costs represent 29% of total costs, at ₹1,161/Mt, a 5% yoy decrease.
• Fuel costs comprise 21%, at ₹883/Mt, a 16% yoy decrease.
• Power costs are 10% of total costs, at ₹402/Mt, a 5% decrease.
• Raw Materials costs constitute 15%, at ₹633/Mt, remaining flat YoY with a 1% decline QoQ.