UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility
Cement

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech's finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector. UltraTech's finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore. For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs. In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

Next Story
Infrastructure Urban

Old Goa Panchayat Demands Scrapping of Bainguinim Waste Mgmt Plant

The Old Goa Panchayat has called for the cancellation of the proposed waste management facility at Bainguinim, warning of potential protests if the government proceeds with the plan. At a press conference, Old Goa Sarpanch Medha Parvatkar, joined by other Panchayat members and concerned citizens, reiterated their opposition to the plant, which has been a source of dissent since 2002. “We have been against the plant since 2002. This area is home to the world heritage site of Old Goa, which includes churches, temples, mutts, schools, and a hospital. We are concerned that the plant could result..

Next Story
Infrastructure Urban

Knauf India Appoints Vijay Mishra as Commercial Director

Knauf, World’s No. 1 company in Drywall & Ceiling Solutions, has appointed Vijay Mishra as its Commercial Director for India operations. With over 23 years of extensive experience in sales, marketing, and business development, Mishra brings a wealth of expertise and leadership that will propel Knauf India into a new era of growth and innovation. Prior to joining Knauf India, Mishra held key roles at various reputed brands, like, H & R JOHNSON, RAK Ceramics, Kajaria Ceramics Limited, Saint - Gobain India and Century Plyboards, where he demonstrated exceptional leadership in strategic plannin..

Next Story
Real Estate

Avg. Flat Sizes Up 7% in Top 7 Cities in 2024

Despite the significant rise in housing prices across cities in 2024, homebuyers continue their quest for bigger living spaces. Latest ANAROCK data shows that average flat sizes in the top seven cities rose by 8 per cent annually in 2024 – from 1,420 sq. ft. in 2023 to 1,540 sq. ft. in 2024. Back in 2019, the avg. flat sizes in these cities was 1,145 sq. ft., indicating a whopping 34% 6-year jump. "A deep-dive into the data shows that at 29 per cent, NCR saw the highest annual growth of average flat size – from 1,890 sq. ft. in 2023 to 2,435 sq. ft. in 2024," says Anuj Puri, Chairman - AN..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000