Q3 preview: UltraTech Cement likely to post 26% decline in PAT

As per a poll of five brokerages by Moneycontrol, UltraTech Cement is expected to report a revenue of Rs 16,696 crore, up 1.2 percent YoY

UltraTech Cement is expected to post a 26 percent fall in net profit year-on-year (YoY) for the quarter ending December 31 due to lower realization and higher depreciation, say analysts. The company's profit after tax is estimated to be at Rs 1,304 crore in the third quarter of FY25.

As per a poll of five brokerages by Moneycontrol, UltraTech Cement is expected to report a revenue of Rs 16,696 crore, up 1.2 percent YoY.

Among the brokerages polled, Axis Securities rolled out the most bullish projections while B&K Securities forecasted the slowest revenue and PAT growth for the company.

The company's volumes are expected to grow 9 percent YoY to 29.76 million tones per annum, said Yes Securities. A strong demand from institutional players and sustained momentum in the housing sector attributed to the growth in volumes.

After a weak demand growth of around 1-2 percent in H1FY25, industry cement demand has improved in Q3FY25, say analysts. "However, regional headwinds such as pollution-related curbs in Delhi-NCR, scarcity of sand, unfavorable weather conditions like severe cold and unseasonal rains in certain regions during Q3FY25 have weighed on overall demand growth," said Motilal Oswal Financial Services in its quarterly update.

The average cost of producing one ton of cement (excluding fixed costs) is expected to be lower and decrease by 4 percent YoY to Rs 4761 in Q3FY25.

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