UltraTech Cement's Q2 net profit falls 42% to Rs 759 cr
Published On: Wednesday, October 19, 2022 | By: Team KnowMyStock
Aditya Birla group firm UltraTech Cement Ltd on Wednesday reported a 42% decline in its consolidated profit after tax (PAT) at ₹759 crores for the quarter ended September 2022, as against ₹1,310 crore in the year-ago quarter. On a sequential basis, UltraTech's profit was down 52 percent from Rs 1,582 crore in the April-June period. Its revenue from operations rose 15.61 percent to Rs 13,892.69 crore during the quarter under review as against Rs 12,016.78 crore in the corresponding period of the last fiscal. The sharp fall in the net profit was due to higher costs and weak profitability. The cement major’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter dropped more than 31% YoY to Rs 1,866.64 crore. The operating margin shrunk by a whopping 914 basis points to 13.4%.
The second quarter is traditionally a weak one for the cement sector, with lower demand as construction activity slows down due to monsoons, the company said in a press release. “Demand was low during July and August 2022, showing some sign of revival in September 2022,” it added.UltraTech's total expenses were at Rs 12,934.27 crore, up 26.68 per cent in Q2/ FY23, as against Rs 10,209.43 crore a year ago.Pick-up in retail demand was on the back of pent-up demand during the monsoons, pre-Diwali construction and repair work gaining momentum, besides pre-election tailwinds, the cement maker said.
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