UltraTech Cement Q2 net profit up 68.75% to ₹1,280 cr, sees demand revival this festive season

• Ultratech Cement said that its volumes grew 16% during the quarter.
• It witnessed demand from infrastructure, rural development and urban residential demand.
• It sees demand revival in the festive season and the January-March peak construction period.

Aditya Birla Group company UltraTech Cement on Thursday reported a 68.7% jump in consolidated net profit at Rs 1,280.38 crore for the second quarter ended September 30, 2023. The company had posted a consolidated net profit of Rs 758.7 crore in the same quarter last fiscal, UltraTech said in a regulatory filing.

Consolidated revenue from operations went up 15% to Rs 16,012.13 crore, as against Rs 13,892.69 crore in the year-ago period, it added. Its volumes grew 16% during the quarter.

Total expenses in the second quarter were higher at Rs 14,493.01 crore, as compared to Rs 12,934.27 crore in the corresponding period last fiscal.

"Cement demand maintained its positive momentum during Q2FY24 also. The company witnessed demand from all sectors, fuelled by government-led infrastructure, rural development and urban residential demand," it said.

Going forward, it said that demand revival is imminent especially during the festive season and the January-March peak construction period. "Demand will also be led by pre-election spending, continued government push on infrastructure development, and sustained real estate development. All of this augur well for the Company," it said in a press release.

UltraTech said it achieved capacity utilisation of 75% during the quarter on expanded capacity. Energy cost was lower by 10% cent YoY, while raw material cost rose 4% on account of increase in cost of flyash and slag.

The company said its on-going expansion program is progressing as per schedule with 5.5 mtpa capacity already been commissioned during this financial year following a 12.4 mtpa capacity addition during FY23. Shares of UltraTech Cement on Thursday were trading 1.4% up at Rs 8,400.10 apiece on BSE.

(With PTI inputs)