UltraTech Cement Q2FY23 profit after tax declines by 42% to Rs 756cr

UltraTech Cement Q2FY23 results : UltraTech Cement Limited, an Aditya Birla Group company, has reported a profit after tax (PAT) of INR 756 crores for the second quarter of the fiscal year 2023 (Q2FY23), a decrease of 42.4% compared to INR 1,314 crores for the same period of the previous fiscal year (Q2FY22).

In the first quarter of FY23, the profit after tax of UltraTech Cement was INR 1,584 crores.

The net sales of the Indian cement manufacturing company during Q2FY23 were INR 13,596 crores, which is an increase of 15.8%, compared to INR 11,743 crores during the corresponding period of the previous fiscal year.

According to the Indian cement manufacturing company, the second quarter is usually a poor one for the cement sector because of lower demand with the slowing down of construction activity due to monsoons.

UltraTech Cement Q2FY23 results. Photo courtesy of LEEROY Agency from Pixabay.

UltraTech Cement stated: “Demand was low during July and August 2022, showing some sign of revival in September 2022. Pick-up in retail demand was on the back of pent-up demand accumulation during the monsoons, pre-Diwali construction and repair work gaining momentum, and pre-election tailwinds. Institutional demand was led by increased construction activity after the receding monsoons.”

The Indian cement manufacturer said that the reported quarter saw an increase of 58% in energy cost, while the cost of raw materials surged by 18%, year-over-year (YoY).

During the second quarter, UltraTech Cement began operations of 1.3mtpa brownfield capacity at Dalla in Uttar Pradesh to increase its total capacity in India to 115.85mtpa and 121.25mtpa globally.