UltraTech Cement, an Aditya Birla Group company, on Friday reported 6.9 per cent year-on-year (YoY) decline in consolidated net profit at Rs 1,584 crore for the quarter ending 30 June, 2022. The company had reported a net profit of Rs 1703 crore in the year-ago period.
The company's net sales rose 28.2 per cent YoY to Rs 15,007 crore in the quarter under review from Rs 11,698 crore in the same quarter last fiscal.
The company added that after a strong end to FY22, cement demand was impacted by overall inflationary trends and lower labour availability in May 2022. However, cement demand picked up in June 2022 on pre-monsoon construction activity.
It also stated that it had achieved capacity utilisation of 83 per cent in Q1FY23 as against 73 per cent during Q1FY22. Domestic
sales volume grew 19 per cent on a year-on-year basis.
On capital expenditure, UltraTech Cement stated its existing expansion program is on track and estimated to be completed by the
end of FY23. "Work on further capex announced during the quarter has already commenced and commercial production from these new capacities is expected to go on stream in a phased manner by FY25, upon completion of the latest round of expansion, the company's capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China."
On FY23 guidance, the company stated that 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.
Shares of UltraTech Cement on Friday traded 4.37 per cent higher at Rs 6,396.85 apiece on BSE during late trade hours.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today