UltraTech Cement dips 3% on weak operational performance in Q3

The company is hopeful that cost inflation has peaked out and, with demand picking up, all of this should bolster volume growth and lead to margin rebound Q4 onwards.

Shares of UltraTech Cement dipped 3 per cent to Rs 7,663.50 on the BSE in Tuesday’s intra-day trade, erasing the entire previous day’s gain as the company reported a weak operational performance for October-December quarter (Q3FY22) on account of higher cost pressure and weak demand owing to unseasonal rains and festive season. The stock of cement major corrected 7 per cent from its record high level of Rs 8,267 hit on November 8, 2021.

In Q3FY22, UltraTech’s revenues were up 5.4 per cent at Rs 12,471 crore year on year (YoY) led by higher realisations while earnings before interest,