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Ultratech Cement jumps after Q2 earnings

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Ultratech Cement rose 3.05% to Rs 7629 after the company's consolidated net profit rose 0.38% to Rs 1,314 crore on 14.41% increase in net sales to Rs 11,743 crore in Q2 September 2021 over Q2 September 2020.

The cement major's profit before tax (PBT) rose 12.35% to Rs 1,947 crore in Q2 September 2021 over Q2 September 2020. Profit before interest, depreciation & taxes (PBIDT) rose 0.78% to Rs 2855 crore during the period under review.

The firm said that Coal and Pet coke prices nearly doubled in Q2 FY22 resulting in energy cost rising 17% YoY. The resulting impact on the company's operations were partly offset by reduction in power consumption and continuing focus on operational efficiencies.

The cement major said it expects to commence mining operations at its Bicharpur coal block situated in Madhya Pradesh, during Q3 FY22 which will help in reducing the dependence on coal purchases.

In its outlook, the company said recovery in rural housing, higher MSP (minimum support price) for kharif crop; improved food grain production n rabharvest; a third consecutive normal monsoon and pick-up n infrastructure-led construction activity are likely to drive cement demand off-take.

Continuous increases in input costs like coal, pet coke and diesel pose a challenge for the industry. However, UltraTech said it is confident of weathering the storm of increase in prices of coal, diesel and other inputs, with its sustainable efficiency improvement programs, accompanied by increase in selling prices to absorb the increase in costs.

"The unexpectedly virulent second wave of COVID-19, looks to be receding almost as quickly as it was rising. Nevertheless, UltraTech continues to closely monitor the situation and the impact on its operations, while according utmost primacy to the safety and well-being of its employees and business partners," the company said.

UltraTech Cement, one of the flagship companies of the Aditya Birla Group, is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, October 18 2021. 14:19 IST