UltraTech Cement Q2 FY25 Results - In-Depth Analysis 📊
🟢 Revenue from Operations
₹15,634.73 Cr
📉 -2.4% YoY decline from ₹16,012.13 Cr in Q2 FY24
📉 -13.5% compared to Q1 FY25 (₹18,069.56 Cr)
🔻 Net Profit
₹825.18 Cr
📉 -35.5% YoY decline from ₹1,280.38 Cr in Q2 FY24
📉 -51.3% compared to Q1 FY25 (₹1,695.22 Cr)
📈 Key Segment Performance
Power & Fuel Expense: ₹3,837.69 Cr
📉 down from ₹4,493.74 Cr in Q1 FY25
📉 down from ₹4,385.33 Cr in Q2 FY24
Freight & Forwarding Expense: ₹3,583.51 Cr
📉 down from ₹4,181.29 Cr in Q1 FY25
📈 slightly up YoY from ₹3,511.76 Cr
Cost of Materials Consumed: ₹2,569.63 Cr
📈 up from ₹2,348.47 Cr in Q2 FY24
Employee Benefits Expense: ₹913.86 Cr
📈 up from ₹812.30 Cr in Q2 FY24
🟢 Total Expenses
₹14,837.44 Cr
📉 down from ₹16,128.37 Cr in Q1 FY25
📈 slightly up from ₹14,493.01 Cr YoY
💼 Important Financial Ratios
Debt-Equity Ratio: 0.25
📈 Higher than Q2 FY24’s 0.18, reflecting moderate leverage.
Interest Coverage Ratio: 7.75
📉 Down from 11.35 in Q2 FY24, indicating lower ability to cover interest expenses.
Net Profit Margin: 5%
📉 Down from 9% in Q1 FY25 and 8% in Q2 FY24, signaling weaker profitability.
Operating Margin: 13%
📉 Decreased from 17% in Q1 FY25 and 16% in Q2 FY24.
Current Ratio: 1.17
Stable liquidity compared to 1.05 in Q2 FY24.
Inventory Turnover Ratio: 7.05
📉 Decreased from 8.58 in Q1 FY25, indicating slower inventory movement.
🔍 Cash Flow Position
Operating Cash Flow: ₹2,826.39 Cr
📉 Down from ₹3,357.22 Cr YoY, showing lower cash generation.
Investing Activities: Significant capital investment of ₹4,490 Cr into property, plant, and equipment, reflecting expansion strategies for future growth.
📜 Disclosure:
This analysis is based on unaudited consolidated financial results for Q2 FY25, as presented by UltraTech Cement Limited. Results are subject to revision based on audited financials or further disclosures.
💡 Benefits for Investors
Stability & Market Leadership: UltraTech remains the largest cement producer in India, providing a safe and stable investment option during uncertain economic periods.
Cost Optimization: The company’s strategic focus on reducing fuel and logistics costs will help improve margins, offering better profitability for long-term investors.
Dividend Track Record: Regular dividend payouts provide consistent returns for investors looking for income-generating stocks.
ESG Initiatives: UltraTech’s investment in green cement production and sustainable practices makes it attractive for environmentally-conscious investors.
📅 Long-Term Prospects for Investors
Capacity Expansion: UltraTech plans to exceed 200 MTPA by FY27, which will significantly boost production capacity and revenue potential.
Government-Driven Growth: Major projects under the Pradhan Mantri Awas Yojana (PMAY) and infrastructure development will continue to drive cement demand, benefiting UltraTech's bottom line in the long run.
International Diversification: The acquisition of RAKW in the Middle East will diversify the company’s revenue sources, reducing reliance on domestic demand and adding stability during periods of domestic market fluctuation.
Sustainability Focus: Long-term commitment to sustainable practices and green energy adoption aligns with global trends, ensuring UltraTech is well-positioned to benefit from ESG-focused investments.
