Pricing and margin worry may downgrade UltraTech Cement; stock falls 1.5%

Cement maker reports 18% jump in December quarter sales

UltraTech Cement reported better- than-expected growth in revenue for the December quarter, with net sales growing 18 per cent over a year to Rs 8,812 crore. Analysts had estimated Rs 8,641 crore.

The surprise was better realisation, year-on-year. While sales volume grew 14 per cent to 18 million tonnes (mt), in line with Street expectations, sales realisation rose 4 per cent. This was due to a 15 per cent rise in volume from the trade segment, where pricing is higher. 

The segment accounted for 64 per cent of total sales volume in the quarter.  

However, pricing remains a near-term overhang for the entire