Ultratech Cement's Q2FY19 profit drops 9.4%, misses market expectations

Company's revenue from operations jumped 20.9% to Rs 77.71 bn while total expenses rose 23.5% in the quarter ended September 30, 2018

Cement maker UltraTech Cement Ltd's quarterly profit dropped 9.4 per cent and missed market expectations due to higher expenses, the company's statement showed on Friday.

Standalone net profit, which does not account for its subsidiaries, stood at Rs 3.91 billion ($53.23 million) for the quarter ended September 30, compared with a profit of Rs 4.31 billion a year earlier, the company said in a statement.

Analysts on average had expected the company to post a profit of Rs 4.15 billion, according to Refinitiv Eikon data.

However, revenue from operations jumped 20.9 per cent to Rs 77.71 billion, while total expenses rose 23.5 per cent.

Rising energy and logistics cost coupled with rupee depreciation led to a 14 per cent increase in costs compared to the second quarter of fiscal 2018, the company said.

Shares of UltraTech Cement dropped 4.2 per cent after the results.