UltraTech Cement Q3 Results: Net Profit Declines 38%, Misses Estimates

The cement maker's Q3 profit fell 38% over a year earlier to Rs 1062.6 crore.
<div class="paragraphs"><p>UltraTech Cement bags. (Photo: Usha Kunji/BQ Prime)</p></div>
UltraTech Cement bags. (Photo: Usha Kunji/BQ Prime)

UltraTech Cement Ltd. third-quarter net profit declined and missed analysts' estimates.

The cement maker reported a 38% year-on-year decline in net profit at Rs 1062.6 crore, according to an exchange filing. That compares with the 1,710.1 crore consensus estimate of analysts tracked by Bloomberg.

Domestic grey cement sales volume rose 13% year-on-year and 12% quarter-on-quarter, respectively. Energy and raw material costs were up 33% and 13% year-on-year, while they remained flat on a sequential basis.

Ultratech Cement Q3 results (Consolidated, YoY)

  • Revenue up 20% at Rs 15,521 crore against Bloomberg estimate of Rs 15,197.8 crore.

  • Ebitda at Rs 2335.9 crore versus an estimate of Rs 2,324.4 crore.

  • Ebitda margin at 15% vs 19%--the estimate of Rs 15.3%.

  • Net profit down 38% at Rs 1062.6 crore against the estimate of 1,092 crore.

The company said in its earnings statement that "given the government's focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years".

Shares of the company closed 0.47% lower on Friday ahead of a 0.44% decline in the benchmark Nifty 50.

Of the 47 analysts tracking the company, 42 maintain a 'buy', two recommend a 'hold' and three suggest to 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 10.1%.


Anjali Rai covers markets and business news at BQ Prime...more
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