Transcript of Earnings Call
INDIACEM · price
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UltraTech Cement crossed 200 million tons of domestic cement production capacity, becoming the largest cement company globally outside China and ahead of its target schedule. The company completed 100% brand migration for acquired assets India Cements and Kesoram ahead of schedule, with India Cements EBITDA improving from INR333/ton in Q2 to INR497/ton in Q4. Consolidated sales volumes crossed 44 million tons in Q4 with EBITDA per ton at INR1,253. Management guided for 37 million tons additional capacity by FY28 taking total to 242.5 million tons, with annual capex of INR8,000-10,000 crores. The company faces cost headwinds from the West Asia conflict impacting packing bags (INR90 crores one-time impact in March) and fuel costs, but has taken price increases to offset these. Industry demand is expected at 6-7% for Q4 and 6.5% for full year FY26, with UltraTech targeting double-digit volume growth for FY27.
UltraTech's strong execution on capacity expansion and asset integration positions it well for continued growth. Near-term margin pressure from West Asia-related cost inflation is being mitigated through price increases, while the robust balance sheet (net debt-EBITDA at 0.94x) and INR240/share dividend demonstrate financial strength.