UltraTech Cement Q2 Results: Profit Misses Estimates, Revenue Rises
Demand was low during July and August, though it was showing signs of revival in September, it said.
UltraTech Cement Ltd.'s second quarter net profit tumbled amid a slowdown in demand, even as the stock gained after results were announced.
The cement-maker's net profit fell 43% year-on year to Rs 755.73 crore in the three months ended September, according to its exchange filing. That compares with the Rs 1,079.90-crore consensus estimate of analysts tracked by Bloomberg.
UltraTech Cement Q2 FY23 Key Highlights (YoY)
Revenue rose 15% to Rs 13,893 crore, against the Rs 13,351.47-crore forecast.
Operating profit declined 31% to Rs 1,866.64 crore.
Ebitda margin contracted to 13.4% from 22.6% a year ago. Analysts had pegged the metric at 15.2%.
Other income jumped to Rs 146.26 crore from Rs 140.05 crore.
Demand was low during July and August, though showing signs of revival in September, it said.
Pick-up in retail demand was on the back of pent-up demand accumulation during the monsoons, pre-Diwali construction and repair work gaining momentum, and pre-election tailwinds, it said.
The company achieved capacity utilisation of 76% as against 71% in the corresponding quarter of the previous year.
Shares of UltraTech gained 0.81% after the results were announced compared with a 0.14% rise in the benchmark Nifty 50.