UltraTech Cement trades firm post Q3 results

The stock is up 3% at Rs 2,688 on reporting 37% yoy growth in net profit at Rs 546 crore in December quarter

UltraTech Cement is trading higher by 3% at Rs 2,688 on the NSE in an otherwise volatile market after the company reported a better than expected 37% year-on-year (YoY) growth in consolidated net profit at Rs 546 crore for the quarter ended December 2015 (Q3FY16) on back of strong operational performance. Meanwhile, net sales grew by 4.7% at Rs 6,108 crore on YoY basis.

The stock hit an intra-day high of 2,713 on the NSE and a combined 217,112 shares changed hands on the counter on the NSE and BSE. Meanwhile at 12:33 pm, the Nifty 50 index is down 0.39% at 7,281.

Analysts on an average expected profit of Rs 431 crore on revenues of Rs 5,813 crore.

“Though cement prices remained subdued, the performance during the quarter was encouraging, driven by operational efficiencies, judicious fuel mix and lower energy costs. This has resulted in lower operating costs,” UltraTech Cement said in a statement.

The company said the demand for cement is expected to pick-up in the near term.

The Governments' focus on infrastructure development, housing sector, smart cities, roads etc., augurs well for UltraTech. The Company is confident of meeting the upsurge in demand and participating proactively in the next phase of growth in the country, it added.

Religare Institutional Research maintains ‘buy’ rating on the stock with target price of Rs 3,300.

We remain positive on UltraTech Cement as the company would continue to benefit from its expanded capacity (around 70mtpa in FY17) and a more extensive presence across the country, the broking firm said in a results review.