Moneycontrol
Last Updated : Jan 18, 2018 04:28 PM IST | Source: Moneycontrol.com

UltraTech Cement Q3 profit falls 2% to Rs 422 cr QoQ, operating margin misses estimates

UltraTech Cement said domestic sales volume stood at 15.1 million tonne, which was ahead of CNBC-TV18 poll of 14.1 million tonne, increasing 37 percent from 11 million tonne in year-ago.

UltraTech Cement, one of the largest cement makers in India, has reported a 2.25 percent decline in standalone profit at Rs 421.5 crore for October-December quarter, compared to Rs 431.24 crore in previous quarter.

On year-on-year basis, net income fell sharply by 25.2 percent, but year-on-year numbers are not comparable as UltraTech acquired cement plants from Jaiprakash Associates and Jaypee Cement Corporation on June 2017 and acquired plants' numbers included in December quarter.

Revenue from operations increased 19.1 percent year-on-year and 15.5 percent quarter-on-quarter to Rs 7,590 crore for quarter ended December 2017, the company said.

"The expected higher budget allocation for infrastructure and rural development will be the key demand drivers," UltraTech said.

The December quarter witnessed increase in variable costs attributable to rise in pet coke and coal prices. The ban on pet coke usage in some states also adversely impacted performance, it added.

Operating profit jumped 14 percent YoY (down 6 percent QoQ) to Rs 1,269 crore and margin contracted 77 basis points YoY (386 basis points QoQ) to 16.7 percent for the quarter.

UltraTech's Q3 earnings missed analyst expectations. Profit was estimated at Rs 430 crore and operating income at Rs 1,330 crore with margin at 18.7 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Power & fuel cost shot up 56 percent year-on-year to Rs 1,509.34 crore, depreciation cost jumped 50 percent to Rs 474.43 crore and finance cost increased 168.5 percent to Rs 347.20 crore in Q3.

UltraTech Cement said domestic sales volume stood at 15.1 million tonne, which was ahead of CNBC-TV18 poll of 14.1 million tonne, increasing 37 percent from 11 million tonne in year-ago.

At 15:05 hours IST, the stock price was quoting at Rs 4,402.75, down Rs 139.75, or 3.08 percent on the BSE.
First Published on Jan 18, 2018 03:07 pm

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