August8 , 2022

UltraTech Cement Q1 Results: Profit falls 7% YoY to Rs 1,582 crore but beats estimates

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UltraTech Cement on Friday reported net profit of Rs 1,582 crore for the quarter ended June 2022 (Q1FY23), 7.45 per cent lower than Rs 1,700 crore in the same quarter of last year. However, the bottomline managed to beat analyst expectations of Rs 1,214 crore.

UltraTech’s revenue was higher in the quarter under review at Rs 15,163.98 crore as against Rs 11,829.84 crore reported in Q1 of FY22. Revenue figure also managed to beat the Street as an ET NOW poll had estimated the figure at Rs 14,238 crore. The top line was higher by 22 per cent on a YoY basis.

The Aditya Birla Group firm said its existing expansion program is on track and estimated to be completed by the end of FY23.

“Work on further capex announced during the quarter has already commenced and commercial production from these new capacities is expected to go on stream in a phased manner by FY25. Upon completion of the latest round of expansion, the Company’s capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China,” it said in a release.

UltraTech said while headwinds arising out of rising cost pressure could put some pressure on the profitability of cement companies, the strong momentum in housing and given the government’s thrust on infrastructure and industrial development, the cement industry in India is set to see an upswing in demand in FY23.

The cement major achieved capacity utilisation of 83 per cent as against 73 per cent during Q1. Domestic sales volume grew 19 per cent on a year-on-year basis.

“After a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labour availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity,” the company said.

The June quarter saw a YoY volume growth of 17 per cent and revenue growth of 34 per cent YoY. Its raw material cost increased 13 per cent on a YoY basis.

After the announcement of the results, UltraTech shares were trading 4.45 per cent higher at Rs 6,401.85 on BSE.

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