Q1 Results: UltraTech Cement Net Profit Plunges 7% To Rs 1,582 Cr

UltraTech Cement on Friday released its financial results for the quarter ended June 2022 and reported a 7 per cent plunge in net profit year-on-year (YoY) at Rs 1,582 crore compared to Rs 1,700 crore in corresponding quarter last year.

Its consolidated revenue in the quarter under review grew 28 per cent to Rs 15,163.98 crore compared to Rs 11,830 crore in the same quarter last year.

Consolidated net sales came at Rs 15,007 crore as compared to Rs 11,698 crore over the corresponding period of the previous year.

Profit before interest, depreciation and tax was at Rs 3,204 crore compared to Rs 3,512 crore.

The cement major achieved capacity utilisation of 83 per cent as against 73 per cent during Q1. Domestic sales volume grew 19 per cent on a year-on-year basis.
"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," the company said.

The company in an exchange filing stated that demand momentum remains robust, as seen through services PMI, external trade, air traffic and bank credit growth. However, it acknowledged that cost pressures continue.

It further stated that inflation is showing signs of relief and the mild moderation in June CPI was led by sequential moderation in food and core inflation.

The June quarter saw a YoY volume growth of 17 per cent and revenue growth of 34 per cent YoY. Its raw material cost increased 13 per cent on a YoY basis. 

UltraTech Cement shares surged after the announcement of results. They were up by 5.08 per cent as of 15:05 IST at Rs 6,440 apiece on the BSE.