UltraTech Cement Ltd.'s second-quarter profit fell on higher expenses and lower other income. The bottom line, however, was in line with analysts' forecasts.
The cement maker's net profit fell 22.8% quarter-on-quarter to Rs 1,313.5 crore in the three months ended September, it said in an exchange filing. That compares with the Rs 1,377.9-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 1.6% over the preceding quarter to Rs 12,016.8 crore. Analysts had projected Rs 11,758.6 crore.
Operating profit declined 18% sequentially to Rs 2,715 crore. Analysts had expected Rs 2,807.1 crore.
Ebitda margin stood at 22.6% versus 28% in the preceding quarter.
Other Highlights
Volumes at 21.64 mt vs 21.53 mt, up 0.5%
Realisations remain flattish at Rs 5553 vs Rs 5495, up 1.1%
Unitary Ebitda Performance declined 18.3% at Rs 1,254 vs Rs 1,536
Logistic cost per tonne rose 3% qoq due to higher diesel prices by 7% and geographical mix impact.
Raw material cost per tonne rose by 2% qoq due to rise in slag, gypsum and HSD Prices.
Energy Cost per tonne rose by 8% qoq due to fuel price impact and annual plant maintenance
Other income fell 51.6% to Rs 134.8 crore
Other expenses as a percentage of net sales rose to 10.8% versus 7.05%.
The company expects cement demand to increase in ensuing quarters on strong infrastructure spend, pick-up in urban real estate demand, sustained rural consumption on an overall good monsoon and reduced Covid caseload.
Shares of UltraTech Cement rose as much as 2.1% on Monday after the earnings were announced compared to a nearly 1% gain in the Sensex.
What Chief Financial Officer Atul Daga Said On A Post-Earnings Call
Company has undertaken average price hikes of Rs 15-20 per bag across all regions.
Hikes inadequate to control escalating cost of production.
Coal crisis has led to sharp increase in energy costs. Coal prices and petcoke prices are up 3x and 2x from quarter ended June.
Company may feel the pressure of escalating energy cost fully in third quarter.
Industry would have to undertake a minimum 10% hike to restore Q1 Ebitda margin.
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