Cement major UltraTech, which is controlled by Aditya Birla, has reported that its consolidated net profit for the October-December quarter dropped 38 per cent to Rs 1,058.20 crore. However, its revenue from operations swelled 19.5 per cent YoY to Rs 15,520.93 crore.
Earlier experts had predicted that the cement sector may show some signs of recovery in the December quarter after a weak record in the September quarter of 2022-23.
The company reported that its EBITDA increased by 37.9 per cent to Rs 3,335 crore YOY this quarter from Rs 2,419 crore in the year-ago quarter.
The company, in its exchange filing on Saturday, stated that its operating margin dropped to 15 per cent in Q3 from 19 per cent in the year-ago period. Volume growth was strong during the quarter but cost pressures resulted in subdued margins.
The company, which is the largest producer of grey cement in India, said its domestic grey cement sales volume rose 13 per cent YoY, while it increased 12 per cent QoQ, respectively. Energy and raw material costs were up 33 per cent and 13 per cent YoY. The company achieved capacity utilisation of 83 per cent last quarter as against 75 per cent in the same quarter last fiscal.
Its consolidated net debt reduced to Rs 7,772 crore in the December quarter from Rs 8,357 crore in the same quarter last fiscal.