UltraTech Cement Q3 Results: Better-than-Expected Net Profit; Stock Climbs Over 3%

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UltraTech Cement Q3 Results: Better-than-Expected Net Profit; Stock Climbs Over 3%

By Malvika Gurung

Investing.com -- The country’s largest cement manufacturer Ultratech Cement (NS: ULTC ) reported its earnings for the quarter ending December 2021, posting better-than-expected results, paring losses and trading 3.52% higher at Rs 7,935.1 apiece at 2:45 pm on Monday.

The company’s consolidated net profit rose 7.8% in Q3 FY22 to Rs 1,708 crore, on a YoY basis, beating ET estimates at Rs 1,405 crore.

Moreover, the cement maker’s revenue from operations increased 5.9% to Rs 12,985 crore on a YoY basis, at par with the market poll of Rs 12,900 crore. Its domestic cement sales volume grew 13.2% in the Apr-Dec 2021 period, even though the figure in the quarter under focus marginally declined.

According to the management report, Q3 witnessed more impact on trade sales than non-trade, as the overall demand of cement remained muted, and reduced typically in Nov, due to factors like untimely monsoons in different parts of the country, the sand crisis in few Uttar Pradesh and East Indian markets, and construction ban in the Delhi-NCR region, besides the holiday season in Diwali.

The company’s management stated with a rise in construction activities and peak season, the domestic demand for cement is pegged to revive in the ongoing quarter, led by increasing government-led infrastructure and housing projects. 

Also, with rural and urban demand for cement estimated to rise moving forward, the company expects strong growth in the ongoing and upcoming quarters.

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