UltraTech Cement Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Prateek Kumar - Jefferies - Analyst : Yeah, hi sir, Congrats for great results. My first question is on your remark in the press release. I understand like most other sector part -- industries are saying that there is generally an improvement in on the ground macro overall. But we have mentioned that the sector may face short-term challenges while the long term is better. Any specific reason for this remark? And how should we look at volume? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Prateek Kumar - Jefferies - Analyst : What is the expectation on volume growth? I mean, while you mentioned like 7% to 8% like long term, but for FY26 because heat wave impact was there last year also.

Question: Prateek Kumar - Jefferies - Analyst : Double digit on like-for-like or this is including -- of course, including India Cements, you should probably grow 20%, including the two new entities?

Question: Prateek Kumar - Jefferies - Analyst : Lastly, on prices, can you just throw some light on the current pricing versus average last quarter pricing?

Question: Prateek Kumar - Jefferies - Analyst : Sure, I'll get back with you. Thank you.

Question: Indrajit Agarwal - CLSA - Analyst : Hi sir, thank you for the opportunity. A couple of questions. First, the 10% volume growth that you mentioned, that is organic like-for-like, right, versus 4% for the industry?

Question: Indrajit Agarwal - CLSA - Analyst :

Question: Indrajit Agarwal - CLSA - Analyst : Okay, thank you. And you mentioned about the profitability trajectory for India cement and that the benefits come through in 4Q '27. So in this period in FY26, '27, what are the levers that will take the profitability from breakeven to let's say 500 and 800 --

Question: Indrajit Agarwal - CLSA - Analyst : Sure. And lastly, one more. In terms of Kesoram, are we looking to rebrand it entirely to UltraTech or we retain that brand?

Question: Indrajit Agarwal - CLSA - Analyst : Sure. Thank you and best of luck. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Amit Murarka - Axis Capital - Analyst : Yeah, good evening, Mr. Daga. So just on India Cements as well. So Kesoram will be gradually rebranded, but India Cements will stay an independent brand? Or will you enter into some tolling arrangements?

Question: Amit Murarka - Axis Capital - Analyst : Sure, sure. So any sense by when can we expect a full transition of India Cements into UltraTech brand?

Question: Amit Murarka - Axis Capital - Analyst : Sure. And I believe by then the upgradation program also gets completed for India Cements, as you mentioned.

Question: Amit Murarka - Axis Capital - Analyst : Okay. And the last question will be on the blending ratios. So there has been a consistent increase in your CC ratio now 1.45. So what is the number that we should think of one year hence or maybe like ultimately, if you have any target in mind to go to 1.6 or something like that?

Question: Amit Murarka - Axis Capital - Analyst : Okay, great, thank you so much. I'll come back in the queue.

Question: Ritesh Shah - Investec - Analyst : Hi, sir. Am I audible?

Question: Ritesh Shah - Investec - Analyst : Yeah, hi. Sir couple of questions. First is, sir, on the leverage.

Question: Ritesh Shah - Investec - Analyst : Good set of numbers, sir. Congratulations.

Question: Ritesh Shah - Investec - Analyst : Sir, a couple of questions. One is, what sort of leverage will we be comfortable with on net debt to EBITDA?

Question: Ritesh Shah - Investec - Analyst : Any time lines to reach that?

Question: Ritesh Shah - Investec - Analyst : That's what I want.

Question: Ritesh Shah - Investec - Analyst : Okay, fine. Sir, my question --

Question: Ritesh Shah - Investec - Analyst : Okay. Sir, second question is on the supply at the industry level. As per your estimates, what are we looking at 40 million tonnes, 50 million tonnes for FY26, FY27 as future average?

Question: Ritesh Shah - Investec - Analyst : Okay. And sir, have you noticed anything different in pricing and discounting trends, specifically in South? Given demand hasn't moved much, but pricing is one way up. How should we understand this?

Question: Ritesh Shah - Investec - Analyst : Okay. Sir, possible to indicate the current prices versus March exit or Q4 averages?

Question: Ritesh Shah - Investec - Analyst : Sure. And sir, just last question. You indicated on India Cements, we are looking at certain brownfield optionality's as well. Can you provide some color over here? And we understand there's a lot of lease expiry, which India faces come 2030. So how are we looking to overcome that particular variable?

Question: Ritesh Shah - Investec - Analyst : Sure. Sir, just a follow-up. There was expectation about basically mines being auctioned in the state of Tamil Nadu. Has there been any progress over here? And would UltraTech also be interested if any of the events play out?

Question: Ritesh Shah - Investec - Analyst : Sure, thank you so much.

Question: Ritesh Shah - Investec - Analyst : I'm good, thank you.

Question: Rahul Gupta - Morgan Stanley - Analyst : Hi, thank you for taking my question. Atul sir, I have one question, just a clarification on medium- to longer-term understanding of cost improvement. So you have guided for INR300 cost improvement and towards that, we have already achieved INR86 in fiscal '25. Now how do we see this from the lens of Kesoram and India Cements consolidation, given majority of the cost benefits will start reflecting from fiscal '27 end? Does this mean that we will see some tail benefits on the consolidated entity fiscal '28 and beyond? Just trying to understand how should we look going forward?

Question: Rahul Gupta - Morgan Stanley - Analyst : Got it. So just to understand this -- just one small clarification. So we may not have apple-to-apple comparison by fiscal '27, but we would continue to see benefits and India Cements and Kesoram would really start seeing fiscal -- every year actually.

Question: Rahul Gupta - Morgan Stanley - Analyst : Great, thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Pulkit Patni - Goldman Sachs - Analyst : So thank you for taking my question. And thanks for putting that slide where you've spoken about individually which are the cost line items and what is the contribution. Now if I look at the numbers that you have, your guidance for FY27 and in case of renewables FY30, plus what you are saying for India and Kesoram in terms of EBITDA improvement, then even if the industry doesn't take any price increase, for us as a consolidated entity to go up about INR250 to INR300 EBITDA per tonne from here till FY28 should be fairly easy. Is that understanding correct? Or in your assumption, there is some price increase that you have baked in when you talk about India's INR500 and Kesoram slightly higher EBITDA per tonne next year?

Question: Pulkit Patni - Goldman Sachs - Analyst : Sure, sir. That's fine. Thank you so much.

Question: Sumangal Nevatia - Kotak Securities - Analyst : Yeah, good evening and thanks for the slide 24 with a lot of granular details. Just a few clarification on this. So this INR300, which you are saying is above this INR86 or it includes this INR86? Just what is the base here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Sumangal Nevatia - Kotak Securities - Analyst : Okay. Understood. Got it. Okay. Atul, on FY25 industry growth of 4% and our growth, is it possible to share some region-wise color, I mean, in terms of volume growth?

Question: Sumangal Nevatia - Kotak Securities - Analyst : All right. Can I just ask one last question on the CW segment, since the time we had this call last month, any new update in terms of hiring, any tie-up, anything which you would like to share?

Question: Sumangal Nevatia - Kotak Securities - Analyst : Got it. Okay, thanks and all that best.

Question: Raashi Chopra - Citi - Analyst : Thank you. And just on India Cements, Atul, you said that the EBITDA per tonne should likely cross about INR500 --

Question: Raashi Chopra - Citi - Analyst : Yeah. So this is essentially -- I mean, is this largely to do with the whole rebranding? I mean if you could sort of break up the slide a little bit.

Question: Raashi Chopra - Citi - Analyst : Got it. Just to rephrase my question, is any of the INR 500 going to come from pricing? Or this whole thing is on the cost and efficiency as in rebranding price?

Question: Raashi Chopra - Citi - Analyst : Understood. And on Kesoram, if you were to exclude the Kesoram volumes and how much -- what was your volume growth or if you could just share the Kesoram volume?

Question: Raashi Chopra - Citi - Analyst : And here, I would imagine that there's not a lot of scope for the EBITDA per tonne improvement.

Question: Raashi Chopra - Citi - Analyst : Understood. Got it. Okay, thank you.

Question: Satyadeep Jain - AMBIT Capital - Analyst : Hi, thank you. Daga, a couple of questions. One on capital allocation and the other one on the acquisition. First, on capital allocation, given you have now two assets that you're looking to integrate, you have the wire and cable business also. Would you say that your plate is full and maybe any additional opportunity would not be of interest at this stage? Would that be a fair assessment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Satyadeep Jain - AMBIT Capital - Analyst : Okay. Second, on the acquisition. So first on the profitability for India Cements, you are suggesting INR800 per tonne by next year.

Question: Satyadeep Jain - AMBIT Capital - Analyst : Initially, the expectation was that this would be similar to UltraTech asset. So once the entire heat consumption, heat rate and power consumption comes down, would you expect this to be at parity with UltraTech assets or there are structural issues which might limit --

Question: Satyadeep Jain - AMBIT Capital - Analyst : So typically, your southern assets would be at the lower end of that entire pie of EBITDA per tonne that you --

Question: Satyadeep Jain - AMBIT Capital - Analyst : Okay,. Just a follow-up to that EBITDA per tonne that you mentioned -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Satyadeep Jain - AMBIT Capital - Analyst : Sure. Thank you.

Question: Navin Sahadeo - ICICI Securities - Analyst : Yeah, good evening and thank you for the opportunity. That's a good question. Sorry, I missed this. Kesoram volumes in Q4 was how much?

Question: Navin Sahadeo - ICICI Securities - Analyst : 1.53 million tonnes. And just my second question sir was since we took charge of this asset from March 1, so brand transition will happen over time in the sense or there is a fair amount of brand transition already happened? I'm only asking to understand from a perspective that South as a region has seen, I think, a decent price improvement in April. So will it be fair to assume that Kesoram gets a higher delta of brand conversion and the price hike?

Question: Navin Sahadeo - ICICI Securities - Analyst : And just one last clarification. When you give CapEx guidance of around INR9,000 crores to INR10,000 crores for FY26, it includes the one for cables and wires business, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Navin Sahadeo - ICICI Securities - Analyst : Understood and thankful. Thank you.

Question: Sanjeev Kumar Singh - Motilal Oswal Financial Services - Analyst : Yeah, good evening, sir. I have two questions. First, on the Building Products segment. So revenue is at INR921 crores, impressive growth of 21%. How are we looking at this segment in next three to four years? And can you guide us on the return ratios, ROCE which we make in this segment? Because we believe that it's largely related to construction chemicals.

Question: Sanjeev Kumar Singh - Motilal Oswal Financial Services - Analyst : Okay. And second question is regarding the South region prices. It has been discussed a lot on this call also. And historically also, we have seen that the price hike announcement is much higher in the South region. And that also follows the pricing in the East region. But over the next two, three months, historically, we have seen that entire price hike, which has been taken over and that gets diluted. So are you seeing any change in the competitive intensity or any change in the player behavior in the South region, which gives us --

Question: Sanjeev Kumar Singh - Motilal Oswal Financial Services - Analyst : Okay sir. Thanks a lot. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Rajesh Ravi - HDFC Securities - Analyst : Hi, there. Congratulations on strong numbers for sure on the margins front. On the demand front, could you share what was the industry growth in Q4?

Question: Rajesh Ravi - HDFC Securities - Analyst : Okay. So it did not like inch up to 8%, 9% as was anticipated at the start of the quarter?

Question: Rajesh Ravi - HDFC Securities - Analyst : Okay. Because your like-to-like volume growth also seems to be around 5% for the quarter, excluding Kesoram and India Cements?

Question: Rajesh Ravi - HDFC Securities - Analyst : And for the full year, how much is the Kesoram volumes which you are incorporating in the numbers?

Question: Rajesh Ravi - HDFC Securities - Analyst : 6.87 million tonnes. Okay. And sir, if I compare the presentation with previous presentation, the corporate presentation, I see the WHRS expansion program has been curtailed because in the current program, which you have shared, I would assume you would be incorporating 50 million tonnes for India as well as Kesoram, including nine so -- around 60 million tonnes, so 60 megawatt. But if I look at the numbers in the presentation, that is absolute number for FY27 is lower versus what you had guided earlier. So ideally, it should have gone up by 50 megawatt, 60 megawatt, but the reported numbers are 10 megawatt, 15 megawatt lower for FY27 target. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call Unidentified Company Representative It will come in FY28, till FY27 number which is --

Question: Rajesh Ravi - HDFC Securities - Analyst : Correct. So now FY26 -- for FY27, say, you have guided 500 megawatts, which will include this 46 megawatts plus 9 megawatts of India Cements so around 56 megawatts. So this 500 megawatts would otherwise -- the earlier presentation was 511 megawatts, which would obviously not be factoring in India and Kesoram's number.

Question: Rajesh Ravi - HDFC Securities - Analyst : So your organic expansion, are there any -- you have curtailed on any WHRS programs on the like-to-like assets?

Question: Rajesh Ravi - HDFC Securities - Analyst : 24 and 22.

Question: Rajesh Ravi - HDFC Securities - Analyst : Okay. And lastly, as you guided India Cements, for Kesoram, what was the total EBITDA for the year as a whole, which you are factoring in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Rajesh Ravi - HDFC Securities - Analyst : FY25.

Question: Rajesh Ravi - HDFC Securities - Analyst : INR112 per tonne, okay.

Question: Rajesh Ravi - HDFC Securities - Analyst : That is okay. That will be from my end sir.

Question: Rajesh Ravi - HDFC Securities - Analyst : Lastly, if I just -- the volume growth for FY26, have you given any guidance, if I missed out? Factoring in the two new assets in place?

Question: Rajesh Ravi - HDFC Securities - Analyst : So excluding Kesoram and India Cements, you're saying you'll be growing double digits.

Question: Rajesh Ravi - HDFC Securities - Analyst : Okay. Great. Thank you sir, I'll come back in queue.

Question: Pathanjali Srinivasan - Sundaram Mutual Fund - Analyst : Thank you for the opportunity sir. Hello, Am I being audible. Thank you for the opportunity. Good set of numbers. I wanted to know some details on the region-wise profitability and volume growth.

Question: Pathanjali Srinivasan - Sundaram Mutual Fund - Analyst : Industry level, would it be possible for you to share?

Question: Pathanjali Srinivasan - Sundaram Mutual Fund - Analyst : Sure. And one question related to our acquisition. So the remaining stake that is, what is the plan there for us? And what would be our payback period for these assets, sir?

Question: Pathanjali Srinivasan - Sundaram Mutual Fund - Analyst : Okay. So we -- would that mean that we would not be acquiring the remaining? Is that the right understanding or --

Question: Pathanjali Srinivasan - Sundaram Mutual Fund - Analyst : Sure. Thank you, sir.

Question: Indrajit Agarwal - CLSA - Analyst : Hi, sir. Thank you for taking my question again. I just want to understand your Northeast strategy. Any change in thought process over there? We have a stake in Star. So how do we wish to progress more organically or increase stake there?

Question: Indrajit Agarwal - CLSA - Analyst : Sure, thank you so much.

Question: Raashi Chopra - Citi - Analyst : Sorry, just a bookkeeping question. The realization increase sequentially was 1.6%, including India Cements and Kesoram. Do you have that with both of them, sequential move?

Question: Raashi Chopra - Citi - Analyst : Yes. So if you -- do you have it with India Cements and Kesoram?

Question: Raashi Chopra - Citi - Analyst : Okay. And I don't know if I missed this, but you gave INR112 as the EBITDA per tonne for Kesoram for the year. What was it for this quarter?

Question: Raashi Chopra - Citi - Analyst : And 1.53 was the volume.

Question: Raashi Chopra - Citi - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Shravan Shah - Dolat Capital - Analyst : Hi sir. Most of the questions have been answered. A couple of things. Just to understand, sir, if I remove the India Cements and the Kesoram volume for this quarter, the number on like-for-like comes -- the growth is 5% and for year also 6%. But do we think that this is -- are we satisfied with this number or given even the organic expansion that we have done, obviously, it is throughout the four quarters, though the capacity is not available for full year, but still don't you think that this number is on the lower side?

Question: Shravan Shah - Dolat Capital - Analyst : Got it. Second, sir, what was the clinker utilization for the fourth quarter and if possible, for full year at consol level or whatever way you want to say?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. Got it. And second, sir, the INR300 cost reduction -- hello? -- yeah INR300 that we have spoken, so this is by FY27 or FY28, we are saying?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. Got it. Got it. And for FY27, what would be the CapEx number, sir?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. Got it, sir. Thank you and all the best.

Question: Ritesh Shah - Investec - Analyst : Hi, sir. Quick two questions, sir. Any update on the JP asset under arbitration? Any time lines?

Question: Ritesh Shah - Investec - Analyst : And sir, any time lines?

Question: Ritesh Shah - Investec - Analyst : Okay. Sir, second question, you -- basically, pet coke prices haven't come down as probably was anticipated. You did indicate in the initial remarks around indirect impact of ocean freight. Can you provide some more color over here? Is it specific with respect to the dry bulk cargoes we are looking at? Or are there any other variables which are coming to play?

Question: Ritesh Shah - Investec - Analyst : Sir, just possible to break up the freight part out of, say, $120, $122 what you have indicated in the presentation? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 10:30AM, ULTC.NS - Q4 2025 UltraTech Cement Ltd Earnings Call

Question: Ritesh Shah - Investec - Analyst : Okay. That's helpful. Thank you so much, sir.