UltraTech cement’s quarter-on-quarter net profit falls 22.8%

UltraTech cement’s net profit fell 22.8% quarter-on-quarter to 1,313.5 crore within the three months which led to September. However, the cement producer recorded a 7.6% year-on-year rise in its net profit for the second quarter to 1,300.1 crore, however the figures fell beneath analysts’ expectations.

In the September quarter UltraTech’s profit pre curiosity, tax, amortisation, and depreciation rose merely 1.6% year-on-year because the company was unable to take as many worth hikes as seen within the earlier quarters.

The Aditya Birla group company’s complete bills within the second quarter of 2021-22 had been at 10,209.43 crore, up 17.02% as towards 8,724.43 crore within the year-ago interval. “Coal and pet coke prices nearly doubled in Q2FY22 resulting in energy cost rising 17 per cent YoY. The resulting impact on the company’s operations were partly offset by reduction in power consumption and continuing focus on operational efficiencies,” stated UltraTech Cement.

The reported Q2 quarter brings weak outcomes for cement firms each year since monsoon causes development work to decelerate everywhere in the nation. UltraTech, nonetheless, expects demand to choose up on the again of decreased Covid circumstances, elevated infrastructure spending, and regular rural and concrete consumption, the company stated in a press release.

“UltraTech is confident of weathering the storm of increase in price of coal, diesel and other inputs, with its sustainable efficiency improvement programs and increasing selling prices to absorb higher costs,” UlraTech stated in an trade submitting.

UltraTech additionally stated that it expects to cut back dependence on exterior sources for coal, which is briefly provide throughout India, by resuming mining operations at Madhya Pradesh’s Bichapur plan from the December quarter.

 

(with company inputs)

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