Q3 Results: UltraTech Cement’s Profit Misses Estimates, Margin Contracts

UltraTech Cement Ltd.’s quarterly profit rose but missed analyst estimates.

Net profit rose 6.5 percent year-on-year to Rs 449 crore in the quarter ended December, India’s largest cement maker said in an exchange filing. That compares with the Rs 500.7-crore consensus estimate of analysts tracked by Bloomberg.

Revenue of the Aditya Birla Group flagship company rose 18 percent on a yearly basis to Rs 8,813 crore, higher than the Rs 8,641-crore estimate.

The company’s sales volume jumped 14 percent to nearly 18 million tonnes compared to an estimated 17.6 million tonnes. Its domestic sales volume rose 14 percent to 17.1 million tonnes whiles the exports rose 13.8 percent to 0.8 million tonnes.

Its operational performance also missed estimates. Operating income, or earnings before interest, tax, depreciation and amortisation, rose 9.6 percent year-on-year to Rs 1,390 crore. That’s lower than the Rs 1,428 crore forecast. The company’s operating margin contracted to 15.8 percent from 17 percent—against the 16.5 percent estimate. This, according to the cement maker, was impacted by the higher raw material prices, logistics and energy costs.

The company’s energy costs, which account for nearly a third of the company’s overall expenses, rose 16 percent on a yearly basis to Rs 1,105 per tonne during the period. Prices of raw materials rose 3 percent year-on-year to Rs 491 crore while the cost involved in logistics rose 4 percent to Rs 1,169 crore.

Other Highlights (YoY)

• Realisation per tonne rose 3 percent to Rs 4,895 tonne.
• Ebitda per tonne stood at Rs 772 from Rs 798.

Shares of cement maker fell as much as 2 percent after the earnings announcement compared with a flat NSE Nifty 50 Index.