About the company:
UltraTech Cement Limited, a flagship company of the Aditya Birla Group, is India’s largest manufacturer of grey cement, ready-mix concrete (RMC), and white cement. Established in 1983 and headquartered in Mumbai, UltraTech operates over 23 cement plants and more than 130 concrete factories across India. The company has expanded its footprint through strategic acquisitions, including Jaypee Group’s cement units and Binani Cement, enhancing its production capacity and market reach. UltraTech’s diverse product portfolio caters to various construction needs, positioning it as a key player in building India’s infrastructure.
Key Highlights:
Strong Demand Outlook: Cement demand in India remains high, driven by real estate and infrastructure growth. India’s per capita cement consumption stands at 295 kg, with significant potential for growth (developed economies peaked at 600-700 kg per capita).
Capacity Expansion: UltraTech aims to reach 182.8 million tons of cement capacity by FY25, covering 28% of India’s total capacity, and further expand to 209 million tons by FY27.
Diversification into Cables & Wires: UltraTech announced a ₹1,800 Cr CAPEX to enter the cables and wires segment.
Rationale: Synergy with its cement business, leveraging existing contractor and real estate connections.
Facility: Production will start by December 2026 in Gujarat, strategically located near copper sources.
Financials: High asset turnover (5-7x), expected IRR of 25%, and ambition to maintain negative working capital like its cement business.
No Further Diversification: UltraTech ruled out expansion into unrelated segments like tiles, sanitary fittings, or FMEG (lights, fans).
Financial Strategy: The company maintains a strong balance sheet, plans no additional CAPEX beyond the announced ₹1,800 Cr, and expects the cables business to be value accretive without impacting cement operations.
UltraTech Cement Financial Performance (Last 3 Quarters – FY25)
| Metric | Q1 FY25 (₹ Cr) | Q2 FY25 (₹ Cr) | Q3 FY25 (₹ Cr) |
|---|---|---|---|
| Revenue | ~₹17,200 Cr | ~₹18,050 Cr | ~₹18,740 Cr |
| EBITDA | ~₹3,500 Cr | ~₹3,750 Cr | ~₹3,900 Cr |
| Profit Before Tax (PBT) | ~₹2,650 Cr | ~₹2,800 Cr | ~₹2,900 Cr |
| Net Profit | ~₹1,950 Cr | ~₹2,050 Cr | ~₹2,150 Cr |
| EBITDA Margin | ~20.3% | ~20.8% | ~21% |
Recent updates:
Highlights from last con call:
Operational Performance
Cement Demand Growth: Driven by infrastructure and real estate, India’s cement per capita consumption now at 295 kg.
Capacity Expansion: Cement production capacity to reach 182.8 Mn tons by FY25 and 209 Mn tons by FY27.
Market Share: UltraTech holds 28% of India’s total cement capacity and is expanding aggressively.
Cables & Wires Business
₹1,800 Cr CAPEX investment into a new cables & wires business, set to begin production by December 2026.
High Asset Turnover (5-7x) and expected IRR of 25%.
Leveraging cement distribution network to enter this market efficiently.
Financial Strategy
Strong balance sheet, maintaining low debt levels.
Cost efficiency through strategic raw material sourcing and digital transformation in supply chain.
Focus on shareholder value with disciplined capital allocation.