Ultratech Cement Q2 Results: Profit Soars 75% on Robust Demand, Margin Expansion

Ultratech Cement, India's largest cement producer has managed to deliver stellar second-quarter performance, posting a remarkable 75% year-on-year surge in net profit. The company’s consolidated net profit clocked in at Rs 1,231.58 crore, significantly up from Rs 702.82 crore in the corresponding period last year. This surge in the bottomline marks a victory over previous cost pressures.

This profit growth was underpinned by decisive operational strength. Earnings Before Interest, Tax, Depreciation, and Amortisation or the Ebitda jumped a 52.6%, reaching Rs 3,094.34 crore compared to Rs 2,027.18 crore last year.

• Revenue up 20.3% to Rs 19,606.93 crore versus Rs 16,294.42 crore. (Bloomberg Estimate: Rs 18,527.1 crore)

• Ebitda up 52.6% to Rs 3,094.34 crore versus Rs 2,027.18 crore.

• Margin at 15.8% versus 12.4%.

• Net Profit up 75% to Rs 1,231.58 crore versus Rs 702.82 crore. (Bloomberg Estimate: Rs 1,455.5 crore)

Further, the company saw a 340 basis point improvement in its operating margin, rising sharply from 12.4% to a robust 15.8%, signaling highly effective cost management and favorable price realizations amidst a competitive market.

Total revenue from operations also climbed solidly by 20.3%, hitting Rs 19,606.93 crore. This solid top-line expansion suggests strong underlying demand, driven primarily by accelerated government-led infrastructure projects and sustained momentum in the housing sector across the country.

The shares of Ultratech Cement had closed 0.36% lower at 12,313 apiece on the NSE ahead of results. The Nifty 50 had closed with 0.49% gains on Friday at close.