“UltraTech’s ambitious capacity expansion capitalises on the substantial long term growth potential of India’s cement sector. Its growth trajectory aligns closely with India’s broader growth story. By increasing its scale, the Company will meet the rising demand for cement nationwide,” said the press release by the Aditya Birla-owned entity.
Moreover, to meet India’s growing demand for cement, UltraTech plans to exceed its total capacity by 200 MTPA by FY27 through the acquisitions of Kesoram Cement (10.75 MTPA) and The India Cements (14.45 MTPA). This expanded manufacturing footprint is expected to help the Birla cement firm reduce operational costs, and improve customer service by leveraging the company’s nation-wide presence and its distribution network, UltraTech further said in the exchange filing.
The leading cement company also noted that it is looking to capitalise on India’s long-term growth potential in the cement sector.
The cement major on Monday reported a 36 per cent fall in its consolidated net profit, which stood at Rs 820 crore for the quarter ended September 2024, compared to Rs 1,281 crore a year ago. The profit also missed Street estimates of Rs 956 crore. Revenue from operations declined 2 per cent year-on-year (YoY) to Rs 15,635 crore.
On Monday, Ultratech shares were trading 1.06 per cent higher at Rs 10,951.6 on NSE.
