{"id":149758,"date":"2023-07-24T10:11:28","date_gmt":"2023-07-24T14:11:28","guid":{"rendered":"https:\/\/44.250.171.167\/?p=149758"},"modified":"2023-07-24T10:11:30","modified_gmt":"2023-07-24T14:11:30","slug":"ultratech-cement-ltd-q1-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/ultratech-cement-ltd-q1-fy24-earnings-conference-call-insights\/","title":{"rendered":"UltraTech Cement Ltd Q1 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from UltraTech Cement Ltd (ULTRACEMCO) Q1 FY24 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>ULTRACEMCO said it commissioned 4.3 million tons of capacity, reduced net-debt, and completed the first phase of its expansion plan, taking company\u2019s all-India capacity to 131.25 million tons.<\/li>\n<\/ul>\n<ul>\n<li>ULTRACEMCO is prioritizing sustainability and accelerating its green energy initiative, with a goal of obtaining 60% of its energy from renewable sources at its enlarged base.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Amit Murarka at Axis Capital asked if the company expects the blending ratio to increase from 1.4 in the next 1-1.5 years. Atul Daga CFO said it will improve, but specific numbers cannot be given.<\/li>\n<\/ul>\n<ul>\n<li>Amit Murarka at Axis Capital enquired if there will be capacity tightness or unavailability to meet demand as commissioning mostly would happen later in 2025, despite achieving 90% utilization in 1Q. Atul Daga CFO said that ULTRACEMCO will not fall short of cement capacity in the near future. The company will have surplus cement available from increased clinker conversion ratio, debottlenecking, and new capacity additions.<\/li>\n<\/ul>\n<ul>\n<li>Sumangal Nevatia with Kotak Securities asked what was the market growth in 1Q, and how did ULTRACEMCO\u2019s performance compare to the market and its peers. Atul Daga CFO answered that ULTRACEMCO performed well across the country, with capacity utilization of 89-90%. The only exception was the South region, where the company has a small market share.<\/li>\n<\/ul>\n<ul>\n<li>Sumangal Nevatia with Kotak Securities enquired about ULTRACEMCO\u2019s regional performance data and if growth in different regions may vary. Atul Daga CFO replied that the cement industry is seeing strong demand across the country, with capacity utilization exceeding 85% in all regions.<\/li>\n<\/ul>\n<ul>\n<li>Sumangal Nevatia of Kotak Securities asked how margins will shape up in the next 1-2 quarters, given the seasonal weakness and the expected pressure on prices. Atul Daga CFO said that ULTRACEMCO has seen price increases in the North and West regions but not in the South and East regions. The company is focusing on servicing customers who are paying the maximum price as it does not have enough capacity to service all customers.<\/li>\n<\/ul>\n<ul>\n<li>Sumangal Nevatia of Kotak Securities queried if it\u2019s fair to assume that future growth will be dominated by organic growth. Atul Daga CFO clarified that ULTRACEMCO is open to inorganic growth opportunities, but only if they are value-adding from both growth and profitability perspectives. If not, the company will focus on organic growth.<\/li>\n<\/ul>\n<ul>\n<li>Pinakin Parekh from JP Morgan asked if petcoke prices remain at current levels for the rest of FY24, will the overall energy cost decline be 30%. Atul Daga CFO answered that if the price of petcoke remains at $125 for the rest of the year, the overall energy cost will decline by 20-30%, but the actual decline will be lower as the spot price of petcoke is not always representative of the actual price that cement companies pay.<\/li>\n<\/ul>\n<ul>\n<li>Prateek Kumar from Jefferies asked if the 4-5% increase in other expenses from 4Q23 to 1Q24 include any one-off expenses. Atul Daga CFO answered that placements and maintenance costs were lower in 4Q, but advertisement and dividend costs were higher in 1Q.<\/li>\n<\/ul>\n<ul>\n<li>Indrajit from CLSA enquired if the reduction in ULTRACEMCO&#8217;s petcoke usage due to availability or because coal is now cheaper than petcoke on a landed basis. Atul Daga CFO answered that availability is becoming more important than the landed business petcoke as it is far cheaper in energy terms.<\/li>\n<\/ul>\n<ul>\n<li>Satyadeep Jain with Ambit Capital asked if ULTRACEMCO plans to invest in renewable energy generation, or will it purchase renewable energy from third parties. Atul Daga CFO said ULTRACEMCO will participate with INR297 crores of equity into the SPV for a group captive scheme. The average landed cost of power from the scheme will be around 5.25 per unit, which is significantly lower than the current cost of power.<\/li>\n<\/ul>\n<ul>\n<li>Satyadeep Jain with Ambit Capital asked if UltraTech considers accelerating its capacity expansion plans, given the strong demand outlook and the company&#8217;s improved market share. Atul Daga CFO replied that the company is committed to growing its capacity to 159 million tons by the end of the year and will announce its plans for further growth in the next few quarters. The company is investing behind growth in India, which it sees as a key market.<\/li>\n<\/ul>\n<ul>\n<li>Sanjay Nandi of VP Capital asked about the guidance on the expected drop in petcoke prices in the coming quarters. Atul Daga CFO said the price of petcoke is volatile and difficult to predict. It could go up or down in the next few days.<\/li>\n<\/ul>\n<ul>\n<li>Amit Murarka with Axis Capital asked about the FY24 capex number. Atul Daga CFO answered that it will be anywhere between INR6,000 crores to INR7,000 crores.<\/li>\n<\/ul>\n<ul>\n<li>Ashish Jain of Macquarie asked if the company is operating close to 100% clinker utilization, given that non-cementitious product sales were at 90% for the quarter. Atul Daga CFO clarified that it\u2019s more than 90%.<\/li>\n<\/ul>\n<ul>\n<li>Shravan Shah at Dolat Capital asked if the broader cost savings, including the lead distance reduction and the decline in power and fuel costs, lead to an improvement in EBITDA per ton in the future. Atul Daga CFO said that the company believes it will still perform well, despite the monsoon season&#8217;s maintenance costs.<\/li>\n<\/ul>\n<ul>\n<li>Jyoti Gupta from Nirmal Bang enquired what factors will contribute to the improvement in EBITDA per ton in 2Q24, given that the lead distance reduction and clinker convergence were not as reflected in 1Q as expected. Atul Daga CFO said the benefits of efficiency improvements were eroded by the busy season surcharge, which was one of the major items that affected the company&#8217;s profitability.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from UltraTech Cement Ltd (ULTRACEMCO) Q1 FY24 Earnings Concall Management Update: ULTRACEMCO said it commissioned 4.3 million tons of capacity, reduced net-debt, and completed the first phase of its expansion plan, taking company\u2019s all-India capacity to 131.25 million tons. ULTRACEMCO is prioritizing sustainability and accelerating its green energy initiative, with a goal of [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[9714,10169,8874],"class_list":["post-149758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-cement-producer","tag-earnings","tag-industrials"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":168142,"url":"https:\/\/alphastreet.com\/india\/ultracemco-q4-call-highlights-strategic-foray-cement-dominance-and-capex-plans\/","url_meta":{"origin":149758,"position":0},"title":"ULTRACEMCO Q4 Call Highlights: Strategic Foray, Cement Dominance and Capex Plans!","author":"Praveen","date":"April 29, 2025","format":false,"excerpt":"UltraTech Cement Ltd, Largest manufacturer of grey cement and ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India, in its Q4 earnings call discussed that the company is investing INR1,800 crore to enter the cables and wires industry, targeting a 60-40 wire-to-cable mix with 5-7x\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":166605,"url":"https:\/\/alphastreet.com\/india\/ultracemco-q3-2024-2025-call-highlights-volume-growth-strategic-acquisitions-capacity-expansion\/","url_meta":{"origin":149758,"position":1},"title":"ULTRACEMCO Q3 2024-2025 Call Highlights: Volume Growth, Strategic Acquisitions &#038; Capacity Expansion!","author":"Praveen","date":"January 27, 2025","format":false,"excerpt":"UltraTech Cement Ltd., India\u2019s largest manufacturer of grey cement, ready-mix concrete and white cement, in its Q3 earnings call highlighted 10% organic volume growth, with strong performance in North and West regions. The company also addressed that its recent acquisitions of India Cements and Kesoram Cement will take about 12\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":133611,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":149758,"position":2},"title":"UltraTech Cement Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 31, 2022","format":false,"excerpt":"https:\/\/youtu.be\/zdRMGmmSgZY Key highlights from UltraTech Cement Ltd (ULTRACEMCO) Q1 FY23 Earnings Concall Q&A Highlights: Sumangal Nevatia from Kotak Securities asked about the inventory and lag in pet coke. Atul Daga CFO replied that it has 50 plus days of inventory at the close of June for pet coke and thermal\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":134973,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":149758,"position":3},"title":"UltraTech Cement Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 20, 2022","format":false,"excerpt":"https:\/\/youtu.be\/dqHZr1kd_vc Key highlights from UltraTech Cement Ltd (ULTRACEMCO) Q2 FY23 Earnings Concall Q&A Highlights: [00:14:52] Sumangal Nevatia of Kotak Securities enquired that on a consumption basis, how is power and fuel cost shaping up. Atul Daga CFO answered that the company believes July-September quarter was the peak cost and a\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":177685,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-q3-profit-beats-estimates-on-robust-infrastructure-demand\/","url_meta":{"origin":149758,"position":4},"title":"UltraTech Cement Q3 profit beats estimates on robust infrastructure demand","author":"Staff Correspondent","date":"January 24, 2026","format":false,"excerpt":"UltraTech Cement Ltd (NSE: ULTRACEMCO) reported a 27% increase in consolidated net profit for the December quarter, surpassing analyst expectations as government-led infrastructure projects fueled higher sales volumes. The Aditya Birla Group\u2019s cement flagship posted a net profit of \u20b91,725.40 crore for the third quarter ended Dec. 31, compared with\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":171620,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-q2-fy26-earnings-results\/","url_meta":{"origin":149758,"position":5},"title":"UltraTech Cement Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"October 20, 2025","format":false,"excerpt":"UltraTech Cement is engaged in the manufacturing and sale of Cement and Cement related product primarily across globe. Presenting below are its Q2 FY26 earnings results. \u00a0 Q2 FY26 Earnings Results Revenue from Operations:\u00a0\u20b919,606.9 crore, up\u00a020.3% YoY\u00a0from \u20b916,294.4 crore in Q2 FY25 and nearly flat sequentially compared to \u20b921,275 crore\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Ultratech Cement Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Ultratech-Cement-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Ultratech-Cement-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Ultratech-Cement-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Ultratech-Cement-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Ultratech-Cement-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Ultratech-Cement-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/149758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=149758"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/149758\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=149758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=149758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=149758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}