Commenting on its outlook, UltraTech stated recovery in rural housing, a normal monsoon and a pick-up in infrastructure activity would potentially lead to a recovery in cement demand off-take.
Cement manufacturer UltraTech's consolidated revenues rose approx 14.4 per cent on a year-over-year basis to reach Rs 11,743 crore in the second quarter. This came as the company registered growth in volumes as infrastructure activities took off following a period of lull owing to the second wave of the COVID-19 pandemic. Housing activities, however, was on a de-growth trajectory in several states.
Profit after taxes remained nearly flat compared to the corresponding period last year at Rs 1,314 crores. It was Rs 1,309 crores in the second quarter of the last fiscal year.
Additionally, the manufacturer informed that coal and pet coke prices nearly doubled this quarter which resulted in energy prices peaking by 17 per cent on a year-over-year comparison. It added however that the impact was partially offset by lowered power consumption and other operational efficiencies.
Commenting on its outlook, the manufacturer stated recovery in rural housing, a normal monsoon and a pick-up in infrastructure activity would potentially lead to a recovery in cement demand off-take. Nevertheless, it cautioned that increasing inputs prices like that of coal, pet coke and diesel continue to pose a challenge for the industry.
It added that in order to absorb the headwind pressures the company may have to increase selling prices alongside sustainable efficiency improvement programmes.