UltraTech Cement's Q3 net profit fell 38% to Rs 1,063 crore | Business Upturn

UltraTech Cement’s Q3 net profit fell 38% to Rs 1,063 crore

Q3 UltraTech Cement results: Moneycontrol polled brokerages and estimated net profit at Rs 1,105.2 crore and consolidated revenue at Rs 15,191.5 crore. Revenue of Rs 15,520.93 crore was more than predicted.

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UltraTech Cement announced a consolidated net profit of Rs 1,062.58 crore for the December quarter of fiscal year 2022–23, down 37.86 percent from Rs 1,710.14 crore the previous year, on January 21.

However, revenue from operations increased 19.53 percent to Rs 15,520.93 crore from Rs 12,984.93 crore in the same quarter last year, according to an exchange report by UltraTech Cement.

While profits fell short of expectations, sales exceeded them. According to a Moneycontrol brokerage poll, net profit was estimated to be Rs 1,105.2 crore, with consolidated sales estimated to be Rs 15,191.5 crore.

Domestic grey cement sales volume increased 13 percent year over year (YoY) and 12 percent quarter over quarter, according to the Aditya Birla Group firm (QoQ). Energy and raw material prices increased by 33% and 13% year on year, respectively, while remaining constant sequentially.

According to UltraTech, capacity utilisation was 83 percent in Q3 FY22, up from 75 percent in Q3 FY22.

During the quarter, Ultra Tech added 5.5 metric tonnes per year (mtpa) of additional capacity. This includes a greenfield integrated cement plant in Pali, Rajasthan, a 1.8 million tonne per year greenfield grinding unit in Dhule, Maharashtra, and a 1.8 million tonne brownfield second integrated facility in Dhar, Madhya Pradesh.

During the quarter, the third Birla White wall-care putty factory in Rajasthan, with a capacity of 4 lakh tonnes per year, was also commissioned. The other two factories are in Rajasthan, in Kharia, and in Madhya Pradesh, in Katni.

In a press release, the company said, “Given the government’s focus on infrastructure growth and the rising demand for urban housing that comes with it, the cement sector is set for strong growth in the coming years.”