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regular-article-logo Wednesday, 24 July 2024

UltraTech net falls 42% to Rs 758.70 crore in second quarter

The company blamed the poor performance on higher operating costs because of inflation

Our Special Correspondent Mumbai Published 20.10.22, 02:30 AM
UltraTech Cement added that energy costs also rose 58 per cent, putting pressure on its margins.

UltraTech Cement added that energy costs also rose 58 per cent, putting pressure on its margins. Shutterstock

UltraTech Cement, the Aditya Birla group firm, on Wednesday disappointed the Street when it reported a 42 per cent fall in consolidated net profit for the quarter ended September 30.

The cement major posted a net profit of Rs 758.70 crore against Rs 1,310.34 crore in the corresponding period of the previous year. UltraTech blamed the poor performance on higher operating costs because of inflation.

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UltraTech Cement added that the second quarter is traditionally a weak period for the cement sector with lower demand as construction activity slows down because of the rains. It added that while demand was low during July and August, it showed signs of revival in September.

“Pick-up in retail demand was on the back of pent-up demand accumulation during the monsoons, pre-Diwali construction and repair work gaining momentum, and pre-election tailwinds.

“Institutional demand was led by increased construction activity after the receding monsoons,’’ the company added.

During the quarter, net sales of the company rose to Rs 13,596 crore from Rs 11,743 crore on a consolidated basis.

However, expenses mounted to Rs 12,934.27 crore from Rs 10,209.43 crore in the year-ago period.

The cost of raw materials increased to Rs 2,004.25 crore from Rs 1,731.36 crore.

UltraTech Cement added that energy costs also rose 58 per cent, putting pressure on its margins.

During the second quarter, its consolidated sales volume was 23.10 million tonnes (mt), registering an annual growth of 7 per cent.

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