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Updated 12:30 IST, July 1st 2024

UltraTech Cement shares rise as company expands capacity in AP and Odisha

The shares of the company have reacted positively to the update, rising as much as 71.45 points or 0.61 per cent to reach Rs 11,732.75 apiece.

Reported by: Anirudh Trivedi
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UltraTech Cement
UltraTech Cement | Image: Pixabay

UltraTech Cement expansion: UltraTech Cement has announced the commissioning of an additional 3.35 million tonnes per annum (mtpa) clinker capacity along with a 1.8 mtpa grinding capacity at its existing unit in Tadipatri, Andhra Pradesh.

In addition to this, the cement major has also increased the grinding capacity of its Jharsuguda unit in Odisha by 0.4 mtpa, bringing the total capacity at this site to 4.5 mtpa. The enhancement was achieved through debottlenecking processes. The development is part of the company's broader strategy to expand its total capacity by 22.6 mtpa, a plan first announced in June 2022.

The shares of the company have reacted positively to the update, rising as much as 71.45 points or 0.61 per cent to reach Rs 11,732.75 apiece as of 12:02 pm on July 1. Even though the company is 143 points shy from its 52-week high, the chart indicates a strong positive momentum in the share with 11.69 per cent returns year-to-date (YTD).

UltraTech Cement year-to-date chart: Image credit: Tradingview

The Mumbai-based cement manufacturer holds a market capitalisation of over Rs 3.36 lakh crore with key business lying in manufacturing ordinary Portland cement, portland blast furnace slag cement, portland pozzolana cement, white cement, and ready mix concrete.

The company has also reported a 35.54 per cent year-on-year increase in consolidated net profit, reaching Rs 2,258.12 crore for the last quarter. 
This marks a major rise from the Rs 1,665.95 crore net profit reported during the same period last year (Q4FY23). Sequentially, the net profit also saw an increase of 27.07 per cent from Rs 1,776.98 crore in the previous quarter.

With these expansions, UltraTech Cement's overall cement capacity has now reached 154.86 mtpa. The growth underlines the company's focus on expanding its production capacities across the country to cater to the rising demand for cement in India.

Published 12:29 IST, July 1st 2024