E-Paper
UltraTech cement’s quarter-on-quarter net profit falls 22.8%
UltraTech, however, expects cement demand to pick up on the back of decreased Covid cases, increased infrastructure spending, and steady rural and urban consumption
UltraTech cement’s net profit fell 22.8% quarter-on-quarter to ₹1,313.5 crore in the three months which ended in September. However, the cement manufacturer recorded a 7.6% year-on-year rise in its net profit for the second quarter to ₹1,300.1 crore, but the figures fell below analysts’ expectations.
In the September quarter UltraTech’s profit pre interest, tax, amortisation, and depreciation rose merely 1.6% year-on-year as the company was unable to take as many price hikes as seen in the previous quarters.
The Aditya Birla group company’s total expenses in the second quarter of 2021-22 were at ₹10,209.43 crore, up 17.02% as against ₹8,724.43 crore in the year-ago period. "Coal and pet coke prices nearly doubled in Q2FY22 resulting in energy cost rising 17 per cent YoY. The resulting impact on the company's operations were partly offset by reduction in power consumption and continuing focus on operational efficiencies," said UltraTech Cement.
The reported Q2 quarter brings weak results for cement companies every year since monsoon causes construction work to slow down all over the country. UltraTech, however, expects demand to pick up on the back of decreased Covid cases, increased infrastructure spending, and steady rural and urban consumption, the company said in a statement.
“UltraTech is confident of weathering the storm of increase in price of coal, diesel and other inputs, with its sustainable efficiency improvement programs and increasing selling prices to absorb higher costs,” UlraTech said in an exchange filing.
UltraTech also said that it expects to reduce dependence on external sources for coal, which is in short supply all over India, by resuming mining operations at Madhya Pradesh’s Bichapur plan from the December quarter.
(with agency inputs)
