Ultratech cement gains 6 percent on strong revenue growth
Published On: Friday, July 22, 2022 | By: Team KnowMyStock
UltraTech Cement shares rose as much as 6 percent on Friday after the company’s quarterly earnings beat estimates on all parameters during the June quarter. It reported a net profit of Rs 1,582 crore for the quarter that ended June 2022 7.45 percent lower than Rs 1,700 crore in the same quarter of last year. Its revenue from operations was up 28.18 percent to Rs 15,163.98 crore during the quarter under review as against Rs 11,829.84 crore in the corresponding period of the last fiscal. Profit before interest, depreciation, and tax was at ₹3,204 crores compared to ₹3,512 crores.UltraTech Cement’s total expenses were at Rs 12,980.06 crore, up 36.51 percent in Q1 FY23 as against Rs 9,508.26 crore.
“After a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labor availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity,” said UltraTech Cement in its earnings statement. The Aditya Birla Group firm said its existing expansion program is on track and estimated to be completed by the end of FY23.Over the outllook, UltraTech said it expects an upswing in demand for the cement industry in FY23 despite inflationary pressures.“While headwinds arising out of rising cost pressure could put some pressure on the profitability of cement companies, the strong momentum in housing and given the governments thrust on infrastructure and industrial development, the cement industry in India is set to see an upswing in demand in FY23,” the Aditya Birla group firm said.
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