Price hikes possible after monsoon in second half of 2024: Ultratech Cement

While hiking prices during monsoon is unlikely, Ultratech Cement CFO Atul Daga stated that hikes are possible in H2CY24.

Ultratech Cement may to increase cement prices in the second half of the year. In a post-earnings conference call, the cement maker's management stated that it expects overall demand to remain strong across India in the coming quarter.

While hiking prices during monsoon is unlikely, Ultratech Cement CFO Atul Daga stated that hikes are possible in H2CY24.

It is worth noting that cement prices entered Q1FY25 with a steep hike announcement in some regions, but with lower-than-historical average demand and a sudden ramp-up of M&As among large players, sustaining any price hike became impossible.

As a result, increases implemented in April were reversed during May and June due to soft demand and stiff competition.

With rural demand gaining momentum and a resurgence in construction activity nationwide, especially in Bihar, Amravati, and other regions, Ultratech Cement expects growth momentum to pick up in the fiscal third quarter (Q3FY25).

Also Read | UltraTech Q1 Results: Net profit flat on-year at Rs 1,695 crore, misses estimates

UltraTech Cement reported a decent set of Q1FY25 results, with consolidated net profit rising marginally on-year at Rs 1,695 crore, against Rs 1,690 crore a year ago. The earnings missed estimates, sending shares tanking.

UltraTech's April-June quarter consolidated revenue rose about 2 percent from a year ago to Rs 18,069 crore.

A Moneycontrol poll estimated India’s largest cement maker’s fiscal first quarter consolidated net profit at Rs 1,733 crore and revenue at Rs 17,962 crore, representing small rises on a year-on-year basis.

General elections, labour shortage due to election-related migration, extreme heatwave, and economic slowdown in a few states hit cement demand during the quarter.

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