UltraTech Q1 net profit falls 7 pc to Rs 1,582 crore; net sales rise 28 pc to Rs 15,164 crore

Aditya Birla group firm UltraTech Cement Ltd on Friday reported a decline of 6.94 percent in its consolidated net profit at Rs 1,582.02 crore in the June 2022 quarter, impacted by inflationary trends.

The company had posted a net profit of Rs 1,700.03 crore in the April-June period a year ago, UltraTech Cement said in a BSE filing.

Its revenue from operations was up 28.18 percent to Rs 15,163.98 crore during the quarter under review as against Rs 11,829.84 crore in the corresponding period of the last fiscal.

”After a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labor availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity,” said UltraTech Cement in its earnings statement.

In Q1 FY23 UltraTech’s consolidated sales volume was 25.04 million metric tonnes during the quarter, registering a 16 percent growth year-on-year.

”The company achieved capacity utilization of 83 percent as against 73 percent during Q1 FY22. Domestic sales volume grew 19 percent on a year-on-year basis,” said UltraTech.

According to the company, all segments indicated a positive demand environment.

”Demand growth largely supported by government spending and an improved outlook for the real estate industry,” said UltraTech in its investors’ presentation.

UltraTech Cement’s total expenses were at Rs 12,980.06 crore, up 36.51 percent in Q1 FY23 as against Rs 9,508.26 crore.

Discussing key cost indicators in Q1 FY23, UltraTech said its logistics cost during the quarter ”increased 6 percent YoY to Rs 1,253 per tonne”, while energy cost increased by 54 percent YoY to Rs 1,573 per tonne due to an ”increase in fuel prices”.

Raw material cost ”increased 13 percent YoY to Rs 577 per tonne” due to an increase in input cost and diesel prices, UltraTech added.

Regarding its capital expenditure, UltraTech said its existing expansion program is on track and estimated to be completed by the end of FY23.

”Work on further capex announced during the quarter has already commenced and commercial production from these new capacities is expected to go on stream in a phased manner by FY25,” it said.

Upon completion of the latest round of expansion, the company’s capacity will grow to 159.25 MTPA, reinforcing its position as the third largest cement company in the world, outside of China, the earnings statement added.

Over the outlook, UltraTech said it expects an upswing in demand for the cement industry in FY23 despite inflationary pressures.

”While headwinds arising out of rising cost pressure could put some pressure on the profitability of cement companies, the strong momentum in housing and given the government thrust on infrastructure and industrial development, the cement industry in India is set to see an upswing in demand in FY23,” the Aditya Birla group firm said.

Shares of UltraTech Cement Ltd closed at Rs 6,437 on BSE on Friday, up 5.03 percent from the previous close.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)