UltraTech Cement bought an additional 11.6% stake in the UAE-based unit Ras Al Khaimah

The flagship cement business of the Aditya Birla Group is UltraTech Cement Limited. UltraTech, a USD 8.4 billion powerhouse in the building solutions industry, is India’s biggest producer of ready-mix concrete (RMC) and grey cement, as well as one of the country’s biggest producers of white cement. Aside from China, it ranks third globally in terms of cement production. The only cement company in the world (apart from China) with more than 100 MTPA of cement production capacity in one nation is UltraTech. The company operates in India, Sri Lanka, Bahrain, and the United Arab Emirates. UltraTech can produce 156.06 million tons of grey cement annually (MTPA) in total. UltraTech comprises eight bulk packaging terminals, one linearization unit, thirty-three grinding units, and twenty-four integrated manufacturing units.

UltraTech Cement acquired an additional 11.6% of Ras Al Khaimah, a company based in the UAE

“UCMEIL” stands for UltraTech Cement Middle East Investments Limited. Yesterday, the company’s wholly-owned subsidiary in the United Arab Emirates acquired 5,77,74,407 equity shares, or 11.55% of RAKWCT’s share capital, increasing its ownership stake in Ras Al Khaimah Co. for White Cement and Construction Materials PSC (“RAKWCT”) to 65.94%.

The results of UltraTech Cement’s Q2 FY25

UltraTech’s consolidated revenue decreased 2.4% year over year to Rs. 15,635 crore in Q2FY25, while sales volume increased 4.3% year over year. Due to lower cement prices, sales realization decreased 6.4% year over year, causing the de-growth. Compared to 75.0% in Q2FY24 (85.0% in Q1FY25), capacity utilization was 68.0% in Q2FY25. 

EBITDA decreased 20.9% year over year to Rs. 2,018 crore. Due to a lower topline and higher other expenses brought on by maintenance costs, the EBITDA margin shrank 302 basis points year over year to 12.9%. PAT consequently dropped 36.0% year over year to Rs. 820 crore, a decline that was exacerbated by rising interest rates. UltraTech had a weak quarter due to sluggish demand caused by a protracted monsoon season. However, the management anticipates that in the near future, strong monsoons will drive demand in rural areas.

UltraTech Cement stock price impact

UltraTech Cement share price is right now at Rs. 11,029.90 per share which is more than 2% down and low-traded and high-traded price is Rs. 11,001.10 & Rs. 11,244.95 respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.