Input cost pressure hits UltraTech Cement's operating performance

With improving per tonne profitability, Shree Cement scored over UltraTech

Last week, India's top cement companies by market value Shree Cement and UltraTech reported strong volume growth, led by revenues for the December 2018 quarter (Q3). As robust demand remains supportive, Shree Cement's total volume (cement plus clinker) growth of 11 per cent year-on-year (YoY) (5 per cent sequentially) was driven by strong sales in eastern India. UltraTech, too, saw volumes surge by 14 per cent YoY (15 per cent sequentially) led by buoyant demand, and high capacity utilisation of the cement plants acquired from JP group.

While both companies reported strong volumes, softer than expected realisation and input cost