Harshit Singh
- Briefly, Ultratech Cement’s Q1 profit increased by 6.6% due to robust demand.
- Consolidated net profit of Rs. 1,688 billion exceeded expectations.
- Strong domestic demand improves the performance of cement manufacturers.
Strong local demand helped cement company Ultratech Cement report a 6.6% increase in first-quarter profit on Friday.
The company’s combined net profit for the three months that ended on June 30 was Rs 1,688 crore, up from Rs 1,584 crore during the same time the year prior.
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Refinitiv data show that Ultratech Cement’s performance outperformed market expectations. Analysts had predicted the company’s profit to be about Rs 1,633 crore.
The booming domestic cement demand in India is to blame for the increase in earnings. The demand for cement products has remained high as the nation sees more infrastructure and construction projects, which is advantageous for cement producers like Ultratech Cement.
The company’s operating revenue increased by about 17% to Rs 17,737 crore.
The company reported that while energy expenses grew by 3%, the price of raw materials jumped by 6%, with important components like fly ash and slag ballooning in price.
The strong first-quarter results will probably increase investor trust in Ultratech Cement and support the company’s long-term growth trajectory.
