{"id":168142,"date":"2025-04-29T06:41:30","date_gmt":"2025-04-29T10:41:30","guid":{"rendered":"https:\/\/44.250.171.167\/?p=168142"},"modified":"2025-04-29T06:41:30","modified_gmt":"2025-04-29T10:41:30","slug":"ultracemco-q4-call-highlights-strategic-foray-cement-dominance-and-capex-plans","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/ultracemco-q4-call-highlights-strategic-foray-cement-dominance-and-capex-plans\/","title":{"rendered":"ULTRACEMCO Q4 Call Highlights: Strategic Foray, Cement Dominance and Capex Plans!"},"content":{"rendered":"<p>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 asset turnover and 20-25% ROC when mature. Management also addressed that it has evaluated and rejected entering adjacent categories for at least five years, focusing instead on maximizing their existing connections with homebuilders, contractors, and EPC companies. UltraTech aims to maintain industry-standard margins and minimalistic working capital despite significant industry capacity expansion.<\/p>\n<p>UltraTech Cement reported a solid Q4 FY25 with a 10% year-over-year increase in consolidated net profit, slightly missing analyst expectations, and revenue growth of 13-14%, driven by a 9-17% rise in sales volumes to 135.83 million metric tonnes, despite a 2% year-over-year drop in cement prices. EBITDA rose 12.3% to INR4,618.4 crore, bolstered by a 16% reduction in fuel costs and a 10% decrease in power expenses, though margins dipped to 20% due to a 1% increase in raw material costs from higher fly ash and slag prices. The company commissioned 17.4 mtpa capacity, increasing domestic grey cement capacity by 30.3% to 183.36 mtpa, and added 269 MW of renewable energy, reaching 1.363 GW, including 342 MW from Waste Heat Recovery Systems. UltraTech advanced its acquisition strategy, completing Kesoram Cement (10.75 mtpa) on March 1, 2025, nearing finalization of India Cements (14.45 mtpa) with EBITDA breakeven and 28% QoQ volume growth, and engaging in talks for HeidelbergCement India, targeting 210.5 mtpa by FY27 with INR10,000 crore capex planned for FY26.<\/p>\n<p>Continue Reading: Unearth 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>Revenue:<\/strong> INR23,063 crores, up 6% YoY.<\/li>\n<li><strong>Net Income<\/strong>: INR2,475 crores, up 10% YoY.<\/li>\n<li><strong>EPS<\/strong>: INR84.23, up 8% YoY.<\/li>\n<li><strong>Operating Income:<\/strong> INR4,608 crore, up 12% YoY.<\/li>\n<\/ul>\n<p><strong>Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Growth Target:<\/strong> Open to both organic and inorganic plans.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong> Capital Allocation &amp; Non-Cement Forays, Future Capex Plan (Ritesh Shah \u2013 Investec): <\/strong>Management assured no entry into additional non-cement categories for at least the next five years unless highly unlikely macro factors emerge. No additional capex beyond the planned \u20b91,800 crore for wires and cables is being considered until the current project is fully ramped up<strong> (<\/strong><strong>Atul Daga \u2013 Executive Director &amp; CFO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Go-to-Market Strategy &amp; Competitive Edge, Pricing Pressure in Wires &amp; Cables (Indrajit Agarwal \u2013 CLSA): <\/strong>UltraTech plans to mirror industry-standard distribution, leveraging its powerful brand, 135,000 touchpoints, and 2,000+ technical service staff to build market presence. Despite industry-wide capex, management does not foresee pricing pressure due to the large (about INR1 lakh crore) and growing market size<strong> (<\/strong><strong>Atul Daga \u2013 Executive Director &amp; CFO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Technology Partnerships &amp; Cost, Product Mix Strategy (Ashish Jain \u2013 Macquarie): <\/strong>Technology-related costs for the wires and cables venture are one-time and fully included in the \u20b91,800 crore capex; third-party tech partners are being engaged. The expected product mix in the wires and cables business is 60% wires and 40% cables<strong> (<\/strong><strong>Atul Daga \u2013 Executive Director &amp; CFO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Capex Phasing, Working Capital &amp; Branding Strategy (Rahul Gupta \u2013 Morgan Stanley, Amit Murarka \u2013 Axis Capital): <\/strong>The INR1,800 crore capex is expected to be broadly spread evenly over the coming years, tapering towards the end as is typical in project execution. Brand building will be expensed through P&amp;L, and the wires and cables business aims for minimal or negative working capital like the cement segment<strong> (Atul Daga \u2013 Executive Director &amp; CFO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Cement Capex Outlook &amp; Product Scope in Cables (Amit Murarka \u2013 Axis Capital, Piyush Khandelwal \u2013 Motilal Oswal): <\/strong>Cement capital employed is already \u20b980,000 crore and expected to reach \u20b9100,000 crore by FY27, with future expansion plans hinted but not formally announced yet. The company will focus on low-tension cables and wires, with no current plans to enter high-tension or EHV segments<strong> (Atul Daga \u2013 Executive Director &amp; CFO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Wires vs. Cables Capex Phasing &amp; Marketing Spend Strategy (Pratik Mahesh Farsi \u2013 HSBC, Raghav Malik \u2013 Jefferies): <\/strong>Facilities for wires and cables will be shared, so capex split is hard to isolate. Wires will hit the market first, with cables following. Promotional spends will be front-loaded in early years and then normalize in line with industry benchmarks<strong> (Atul Daga \u2013 Executive Director &amp; CFO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 asset turnover and 20-25% ROC [&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":[9714,10169,8874],"class_list":["post-168142","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\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128732,"url":"https:\/\/alphastreet.com\/india\/infographic-all-you-need-to-know-about-ultratech-cements-q4-results\/","url_meta":{"origin":168142,"position":0},"title":"Infographic: All you need to know about UltraTech Cement\u2019s Q4 results","author":"Nishad","date":"May 2, 2022","format":false,"excerpt":"UltraTech Cement(NSE:ULTRACEMCO) reported its fourth-quarter 2022 results. The company had net revenue of \u20b915,859.67 crores with an increase of 10% year on year. UltraTech Cement had a net profit of \u20b92,614 crores or \u20b990.81 per share compared to \u20b91,774 crores or \u20b961.52 per share in the same quarter of the\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/05\/UltraTech-CementQ422.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/05\/UltraTech-CementQ422.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/05\/UltraTech-CementQ422.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/05\/UltraTech-CementQ422.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/05\/UltraTech-CementQ422.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":149581,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-ltd-q1fy24-7-rise-in-profits\/","url_meta":{"origin":168142,"position":1},"title":"UltraTech Cement Ltd Q1FY24; 7% rise in Profits","author":"Chirag Gupta","date":"July 21, 2023","format":false,"excerpt":"UltraTech Cement is engaged in the manufacturing and sale of Cement and Cement related product primarily in India. Financial Results: UltraTech Cement Ltd reported Revenues for Q1FY24 of \u20b917,737.00 Crores up from \u20b915,164.00 Crore year on year, a rise of 16.97%. Total Expenses for Q1FY24 of \u20b915,648.00 Crores up from\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-124.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-124.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-124.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-124.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-124.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-124.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":128334,"url":"https:\/\/alphastreet.com\/india\/infographic-all-you-need-to-know-about-ultratech-cements-q3-results\/","url_meta":{"origin":168142,"position":2},"title":"Infographic: All you need to know about UltraTech Cement&#8217;s Q3 results","author":"Nishad","date":"March 24, 2022","format":false,"excerpt":"UltraTech Cement(NSE:ULTRACEMCO) reported its third-quarter 2022 results. The company had net revenue of \u20b913,055 crores with an increase of 4% year on year. UltraTech Cement had a net profit of \u20b91,710 crores or \u20b959.19 per share compared to \u20b91,584 crores or \u20b954.92 per share in the same quarter of the\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/03\/UltraTech-CementQ322.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/03\/UltraTech-CementQ322.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/03\/UltraTech-CementQ322.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/03\/UltraTech-CementQ322.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/03\/UltraTech-CementQ322.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":139594,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-net-profit-drops-by-38-in-q3fy23\/","url_meta":{"origin":168142,"position":3},"title":"Ultratech Cement net profit drops by 38% in Q3FY23","author":"Chirag Gupta","date":"January 31, 2023","format":false,"excerpt":"UltraTech Cement today reported 38% on-year drop in its consolidated net profit at INR 1,058.20 crore in the December quarter. Its revenue from operations, however, rose 19.5% YoY to INR 15,520.93 crore. The company's operating margin dropped to 15% in Q3 from 19% in the year-ago period but was up\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/bd684fa3-7ced-4e24-9e39-375b501ce383.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/bd684fa3-7ced-4e24-9e39-375b501ce383.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/bd684fa3-7ced-4e24-9e39-375b501ce383.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/bd684fa3-7ced-4e24-9e39-375b501ce383.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/bd684fa3-7ced-4e24-9e39-375b501ce383.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/bd684fa3-7ced-4e24-9e39-375b501ce383.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":144462,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-q4fy32-results-out-revenues-soars-by-18\/","url_meta":{"origin":168142,"position":4},"title":"Ultratech Cement Q4FY32 results out, revenues soars by 18%","author":"Chirag Gupta","date":"April 28, 2023","format":false,"excerpt":"Ultratech Cement Ltd reported Total revenue for Q4 FY23 of \u20b918,562 Crore, up from \u20b915,767 Crore year on year depicting a growth of 18%. Meanwhile, consolidated Net Profit of \u20b91,670 Crore, down 36% from \u20b92,614 Crore in the same quarter of the previous year.\u00a0The Earnings per Share is \u20b957.75, down\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/4a43f397-11d2-4ce6-911a-fffbab0102f6.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/4a43f397-11d2-4ce6-911a-fffbab0102f6.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/4a43f397-11d2-4ce6-911a-fffbab0102f6.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/4a43f397-11d2-4ce6-911a-fffbab0102f6.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/4a43f397-11d2-4ce6-911a-fffbab0102f6.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/4a43f397-11d2-4ce6-911a-fffbab0102f6.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":168137,"url":"https:\/\/alphastreet.com\/india\/ultratech-cement-ltd-q4fy25-10-rise-in-profits\/","url_meta":{"origin":168142,"position":5},"title":"UltraTech Cement Ltd Q4FY25; 10% rise in Profits","author":"Chirag Gupta","date":"April 28, 2025","format":false,"excerpt":"UltraTech Cement is engaged in the manufacturing and sale of Cement and Cement related product primarily across globe. Financial Results: UltraTech Cement Ltd reported Revenues for Q4FY25 of \u20b923,063.00 Crores up from \u20b920,419.00 Crore year on year, a rise of 12.95%. Total Expenses for Q4FY25 of \u20b920,056.00 Crores up from\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/c7ad755c-9a84-4d68-bf2c-1a90a8a698ac.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/c7ad755c-9a84-4d68-bf2c-1a90a8a698ac.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/c7ad755c-9a84-4d68-bf2c-1a90a8a698ac.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/c7ad755c-9a84-4d68-bf2c-1a90a8a698ac.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/c7ad755c-9a84-4d68-bf2c-1a90a8a698ac.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/c7ad755c-9a84-4d68-bf2c-1a90a8a698ac.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/168142","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=168142"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/168142\/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=168142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=168142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=168142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}