UltraTech Cement Q2 Profit Rises 21% as Prices Trend Higher
UltraTech Cement Limited (NSE:ULTRACEMCO) reported a 21% year-on-year increase in consolidated net profit for the September quarter to 1,501 crore INR. Consolidated sales grew nearly 19% to 23,295 crore INR, supported by a 14% rise in domestic grey cement volumes to 35.94 million tonnes. Profit before interest, depreciation, and tax increased more than 17% to 3,832 crore INR. UltraTech shares fell 2.36% today to 10,650 INR.
The July-to-September period is typically a weak quarter for building materials due to heavy rains disrupting construction. A weaker monsoon season allowed work to continue uninterrupted, preventing the typical price drop seen in July and August. At the same time, renewed geopolitical tension in West Asia escalated fuel expenses for the sector.
Cement prices began climbing in September and have continued to rise through October. Executive leadership expects further price improvement over the next few months, with the full impact expected to be reflected in third-quarter financial results after holiday season disruptions clear.
Key points
- UltraTech Cement consolidated net profit increased 21% year-on-year to 1,501 crore INR in the September quarter.
- Consolidated sales grew nearly 19% to 23,295 crore INR as domestic grey cement volumes expanded 14%.
- A weak monsoon sustained construction demand, offsetting higher fuel costs from West Asia conflicts.
- Cement prices rose in September and October, with further price gains expected to boost Q3 results.
- UltraTech Cement shares traded down 2.36% to 10,650 INR today.
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What were UltraTech Cement's September quarter earnings?
UltraTech Cement reported a 21% year-on-year profit growth to 1,501 crore INR for the September quarter, while consolidated sales rose nearly 19% to 23,295 crore INR.
Why did cement prices stay strong during the monsoon season?
A weak monsoon season allowed construction activity to continue during July and August when demand normally slows, helping cement makers avoid seasonal price cuts.
What is the price outlook for UltraTech Cement in Q3?
UltraTech Cement expects cement prices to improve further over the next few months, with the full earnings benefit showing in its third-quarter results.