India’s ace cement maker UltraTech Cement, reported a 38 per cent decrease in quarterly profit that was hampered due to a surge in expenses. In the Ultratech Cement Q3 results (Q3FY23) declared on Saturday, the company said that its profits fell to 10.62 billion rupees ($131.2 million) from 17.10 billion rupees in Q3FY22. The expenses of the company increased to 141.23 billion rupees from 114.22 billion rupees.
The UltraTech Cement Q3FY23 result numbers are on expected lines as revenues increase, profits and margins have been impacted due to increased expenses. The company reported that the consolidated net debt reduced to Rs 7,722 crore even as sales showed an upmove of 20 per cent and volumes were up by 13 per cent.
Year 2023 could be better for India’s cement industry, feel analysts
India’s cement industry, which was severely hit during the COVID-19 pandemic, has been witnessing a tough competition in light of the latest entrance in the sector of the Adani Group. Analysts believe that the prices of Petroleum coke (petcoke) and coal stabilised in the quarter, which may mean that 2023 could be better for cement manufacturers than 2022 – Reuters cited.
Recovery of the rural economy and the sales in real estate market should also have a positive impact on the cement industry in the country. Meanwhile, the shares of Ultra Tech Cement traded at 7,177.15 rupees – marginally lower – in the Friday trading session. The stock has shredded almost 8 per cent in the year gone by.
