UltraTech Cement Shares in Focus; Breaks 4-Day Winning Streak

UltraTech Cement’s share price traded 0.68% lower at ₹11,343.30 at 12:20 PM on the NSE. The stock opened at ₹11,251, lower than ₹11,420.90 at its previous close. The stock had gained more than 7.5% in the previous four trading sessions.

Q3 FY25 Financial Details

UltraTech Cement reported a 3% year-on-year (YoY) increase in revenue, reaching ₹17,193 crore for the October to December 2024 quarter. Despite a 17% YoY decline in net profit to ₹1,473 crore.

The company’s EBITDA stood at ₹2,888 crore, compared to ₹3,131 crore in Q3 of FY24. The firm’s margin for the quarter improved to 17%, 70 basis points higher than the expected 16.3%.

UltraTech’s domestic sales volume grew by 10% YoY, and energy costs decreased by 13% YoY. The company also commissioned 1.8 million tons per annum (MTPA) capacity, bringing its consolidated cement capacity to 171.11 MTPA.

UltraTech aims to exceed 200 MTPA by FY27 through ongoing expansions and acquisitions. Following the positive Q3 results, UltraTech’s stock surged over 6%, reaching ₹11,351.60 on the NSE.

Overview of Investment Proposal

UltraTech Cement Limited, in a recent board meeting, has approved a proposal to acquire a non-controlling minority stake in Star Cement Limited. This strategic investment will see UltraTech purchase up to 3.70 crore equity shares of Star Cement, at a price not exceeding ₹235 per share. The acquisition, was expected to be completed within a month, for approximately ₹851 crore.

Star Cement, incorporated on November 2, 2001, is primarily engaged in the manufacture and sale of cement, with a turnover of ₹2,910.66 crore as of FY24. The acquisition does not fall under related-party transactions and will be funded through cash consideration.

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