{"id":166605,"date":"2025-01-27T04:06:41","date_gmt":"2025-01-27T09:06:41","guid":{"rendered":"https:\/\/44.250.171.167\/?p=166605"},"modified":"2025-02-03T07:09:16","modified_gmt":"2025-02-03T12:09:16","slug":"ultracemco-q3-2024-2025-call-highlights-volume-growth-strategic-acquisitions-capacity-expansion","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/ultracemco-q3-2024-2025-call-highlights-volume-growth-strategic-acquisitions-capacity-expansion\/","title":{"rendered":"ULTRACEMCO Q3 2024-2025 Call Highlights: Volume Growth, Strategic Acquisitions &#038; Capacity Expansion!"},"content":{"rendered":"<p>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 months to improve, with full Waste Heat Recovery Systems (WHRS) benefits expected by Q4 FY26. The company mentioned that it plans significant capex of INR9,000 crores in FY26 and INR6,000-7,000 crores in FY27, funded through internal accruals. The company aims to outperform projected industry growth of 6-7% by targeting 10% plus growth, while working on gradual rebranding of India Cements products over 9-12 months.<\/p>\n<p>UltraTech reported mixed Q3 results, with total revenue growing 3.3% beating estimates, while consolidated net profit declined 16.9%. The company showed strong operational growth with consolidated sales volume increasing 11% to 30.37 million tonnes and significant growth across segments. Energy costs decreased by 13% year-on-year, contributing to a 17% margin and EBITDA of INR2,888 crore, while capacity utilization reached 73%. The company made strategic moves by acquiring a 32.72% stake in India Cements Limited, and became the first Indian cement company to use National Waterways for raw material transport while expanding green energy usage to 33.4%. Looking ahead, UltraTech aims to exceed 200 mtpa cement capacity by FY27 through expansions and the pending Kesoram Cement acquisition. UltraTech is also in advanced talks to acquire a 69.39% stake in HeidelbergCement India, adding 14 mtpa capacity to its portfolio, furthering its inorganic growth strategy.<\/p>\n<p>Continue Reading: Discover the Vital Insights from UltraTech Cement Ltd.&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Total Revenue:<\/strong> INR17,437 crore, up 3.3% YoY.<\/li>\n<li><strong>Net Profit<\/strong>: INR1,473 crore, down 16.9% YoY.<\/li>\n<li><strong>Basic EPS:<\/strong> INR50.99, down 17.3% YoY.<\/li>\n<li><strong>Total Expense:<\/strong> INR15,604 crore, up 7.4% YoY.<\/li>\n<\/ul>\n<p><strong>Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Demand Growth: <\/strong>Strong momentum from Q3, driven by Individual House Builders demand, infrastructure growth, and rural housing.<\/li>\n<li><strong>Expansion Plans: <\/strong>Additional 10\u201315 million tonnes of capacity by 2026, aiming for 211\u2013212 million tonnes.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong>Volume Growth &amp; Regional Performance, South Region Strategy (Sumangal Nevatia &#8211; Kotak Securities): <\/strong>India Cements\u2019 volume was excluded from growth numbers, which reflect UltraTech&#8217;s organic growth. North and West regions performed best, with East and South lagging. India Cements\u2019 capacity utilization (57%) has potential for improvement, while Kesoram\u2019s 70% utilization could rise by 4-5%. Brand transitions will be gradual<strong> (Atul Daga &#8211; CFO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Capex Allocation &amp;<\/strong> <strong>Fuel Cost Trends (Amit Murarka &#8211; Axis Capital): <\/strong>Capex for UltraTech remains INR8,000-9,000 crore, with India Cements and Kesoram managing their respective capex needs. Higher-priced contracts ended in December; the fuel mix limits cost reductions, which remain dependent on market prices<strong> (Atul Daga &#8211; CFO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Future Volume Growth &amp; Realization, Profitability Outlook (Rahul Gupta &#8211; Morgan Stanley, Pulkit Patni &#8211; Goldman Sachs): <\/strong>Capacity utilization for FY26 is expected at 80-85%, targeting double-digit growth on expanded capacity of 185 million tonnes. India Cements&#8217; profitability turnaround could take at least 12 months, with rebranding starting gradually and EBITDA nearing UltraTech\u2019s levels within this period<strong> (Atul Daga &#8211; CFO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Limestone Reserves in Tamil Nadu &amp; Northeast Expansion Challenges (Jashandeep Chadha \u2013 Nomura, Navin Sahadeo &#8211; ICICI): <\/strong>India Cements\u2019 reserves in Tamil Nadu ensure more than 25 years of operational longevity. Progress on Northeast plans has stalled due to difficulties in acquiring land and mines with clear titles<strong> (Atul Daga &#8211; CFO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Power Costs &amp; Green Energy Share, Coastal Transport Mix (Patanjali Srinivasan \u2013 Sundaram, Satyadeep Jain &#8211; Ambit):<\/strong> Power costs remained relatively flat despite green energy share increasing from 24% to 33%. A one-time charge by the Andhra Pradesh government impacted December quarter costs. Coastal transport, currently at 3% of logistics, is expected to increase to 5% as rail connectivity improves in key markets<strong> (Atul Daga &#8211; CFO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Industry &amp; UltraTech Growth, Capex Plans (Shravan Shah &#8211; Dolat Capital, Rajveer Tandon &#8211; Ventura Securities): <\/strong>Industry demand is expected to grow 6-7% in FY26, while UltraTech targets 10%+ growth, aided by clinker capacity additions. FY26 capex is set at INR8,000-9,000 crores, funded through internal accruals. Debt reduction will begin gradually post-capex cycle<strong> (Atul Daga &#8211; CFO)<\/strong>.<\/li>\n<\/ul>\n<p><strong>To get further Insights: <a href=\"https:\/\/app.asai.alphastreet.io\/test-drive\/transcript\/view\/c59c4562-f279-5f6b-910c-52259ce2814d\/earnings_conference\" target=\"_blank\" rel=\"noopener\">Click Here<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 months to improve, with full [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"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":[10169,9478],"class_list":["post-166605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-industirals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":172083,"url":"https:\/\/alphastreet.com\/india\/ambuja-cements-q2-fy26-earnings-results\/","url_meta":{"origin":166605,"position":0},"title":"Ambuja Cements Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"November 4, 2025","format":false,"excerpt":"Ambuja Cements Ltd, part of the Adani Group and a leading cement manufacturer in India, reported outstanding Q2 FY26 results driven by strong volume growth, premium product sales, and a significant tax provision reversal. Financial Highlights: Revenues rose 21.48% year on year to \u20b99,174 crore from \u20b97,552 crore. Total expenses\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Q2 FY26","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/AM.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/AM.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/AM.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/AM.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/AM.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/AM.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":171126,"url":"https:\/\/alphastreet.com\/india\/orient-cement-q1-fy26-earnings-results\/","url_meta":{"origin":166605,"position":1},"title":"Orient Cement Q1 FY26 Earnings Results","author":"Chirag Gupta","date":"September 10, 2025","format":false,"excerpt":"Orient Cement Ltd is primarily engaged in the manufacture and sale of Cement and its manufacturing facilities at present are located at Devapur in Telangana, Chittapur in Karnataka and Jalgaon in Maharashtra. Presenting below are its Q1 FY26 earnings results. \u00a0 Q1 FY26 Earnings Results Revenue from Operations:\u00a0\u20b9866.48 crores, up\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Orient Cement Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/5-6.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/5-6.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/5-6.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/5-6.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/5-6.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/5-6.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":177602,"url":"https:\/\/alphastreet.com\/india\/india-cements-ltd-q3-fy26-resilient-25-volume-growth-and-operational-turnaround-amidst-strategic-restructuring\/","url_meta":{"origin":166605,"position":2},"title":"India Cements Ltd Q3 FY26 Resilient 25% Volume Growth and Operational Turnaround Amidst Strategic Restructuring","author":"Staff Correspondent","date":"January 26, 2026","format":false,"excerpt":"India Cements Ltd., (NSE:INDIACEM), a subsidiary of UltraTech Cement Limited, is a major player in the Indian building materials sector with a legacy dating back to 1946. Headquartered in Chennai, the company is primarily dedicated to the manufacturing and sale of cement and related products. ICL operates a robust network\u2026","rel":"","context":"In &quot;LATEST&quot;","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"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":171785,"url":"https:\/\/alphastreet.com\/india\/sagar-cements-q2-fy26-earnings-results\/","url_meta":{"origin":166605,"position":3},"title":"Sagar Cements Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"October 23, 2025","format":false,"excerpt":"Sagar Cements is engaged in the business of manufacture and sale of cement. Presenting below are its Q2 FY26 earnings results. Q2 FY26 Earnings Results Consolidated Revenue from Operations:\u00a0\u20b9601.86 crore, up\u00a026.7% YoY\u00a0from \u20b9475.12 crore in Q2 FY25, reflecting firm demand and improved operational scale.\u200b Consolidated Net Loss: \u20b944 crore, a\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Sagar Cements Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Sagar-Cements-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\/Sagar-Cements-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Sagar-Cements-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Sagar-Cements-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Sagar-Cements-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Sagar-Cements-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":171669,"url":"https:\/\/alphastreet.com\/india\/india-cements-q2-fy26-earnings-results\/","url_meta":{"origin":166605,"position":4},"title":"India Cements Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"October 21, 2025","format":false,"excerpt":"India Cements Ltd, headquartered in Chennai, is one of India\u2019s leading cement manufacturers. Incorporated in 1946 by Shri S. N. N. Sankaralinga Iyer and Sri T. S. Narayanaswami, the company has diversified into shipping, captive power, and coal mining\u2014offering synergies to its core cement operations. It is also known for\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Q2 FY26","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/IN-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/IN-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/IN-2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/IN-2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/IN-2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/IN-2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":178612,"url":"https:\/\/alphastreet.com\/india\/ambuja-cements-q3-fy26-record-volumes-and-revenue-growth-masked-by-profit-slump-and-massive-tax-base-effect\/","url_meta":{"origin":166605,"position":5},"title":"AMBUJA CEMENTS Q3 FY26: Record Volumes and Revenue Growth Masked by Profit Slump and Massive Tax Base Effect","author":"Staff Correspondent","date":"January 30, 2026","format":false,"excerpt":"Ambuja Cements Limited (NSE: AMBUJACEM), part of the diversified Adani Portfolio and the world\u2019s ninth-largest building materials solutions company, delivered robust financial results for the quarter ended 31st December 2025. Ambuja Cements Ltd, the Adani Group\u2019s cement flagship, today reported a complex set of Q3 FY26 earnings characterized by record-breaking\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\/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":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166605","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=166605"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=166605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=166605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=166605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}