UltraTech Cement Q3 results | Profit rises to Rs 1,708 crore, beats estimates, revenue grows to Rs 12,985 crore

Market Outlook

Demand and cost pressures negated higher realisations and impacted the performance during the December quarter

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UltraTech Cement Limited, India’s largest cement manufacturer, on January 17 exceeded expectations and reported a consolidated profit after tax (PAT) of Rs 1,708 crore for the quarter ended December 2021, up 7.8 percent from Rs 1,584 crore in the year-ago period. PAT during the previous quarter was Rs 1,314 crore.

Consolidated revenue met expectations and came in higher by 6 percent at Rs 12,985 crore against Rs 12,254 crore in the December 2020 quarter and Rs 12,017 crore in the September quarter.

While there was a year-on-year decline in volumes, they improved marginally on a sequential. Unseasonal rainfall, sand crisis in a few markets of Uttar Pradesh and in East India and a ban on construction activities in the Delhi–National Capital Region hit volumes.

Also read: UltraTech Q3 results preview | Weak demand, higher input cost may result in steep decline in margins and profitability

Gross margin—the difference between sales and cost of goods sold—was hit due to higher prices of coal as well as petcoke and the freight cost due to rising oil prices.

The stock opened at Rs. 7,635 on the National Stock Exchange, down Rs 25.5 from its previous day’s close, on January 17. It has generated returns of about 38 percent over the last year and 2.6 percent in the last month.

(This is a developing story, please come back for more)