UltraTech Cement Q3FY23 Results: Higher input costs drag profit and margins on YoY basis; in-line with estimates
Q3 profit and margins were mainly under pressure due to higher energy and raw material costs, which were up 33 per cent and 13 per cent YoY, respectively, the company said in its earnings filing.
Cement major UltrTech Cement reported in-line earnings with Zee Business estimates for the third quarter of the financial year 2022-23(Q3FY23). The top line grew year-on-year (YoY) in double-digit as expected, however, the bottom line declined YoY amid higher input costs in the December quarter.
The Aditya Birla Group cement major’s consolidated net profit fell by nearly 38 per cent to Rs 1,058 crore in Q3FY23 as compared to Rs 1,707 crore in the same quarter a year ago. The decline in profit resulted in a subdued margin for the quarter, UltraTech said in its regulatory filing.
The company’s margin dipped by 350 basis points to 15.1 per cent in Q3FY23 from 18.6 per cent in the same quarter year ago. Zee Business had estimated margins around 15.4 per cent in Q3.
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Profit and margins for the December quarter were mainly under pressure due to higher energy and raw material costs, which were up 33 per cent and 13 per cent YoY, respectively, the company said in its earnings filing, adding that they remained flat on a sequential basis.
According to Zee Business research, the cement giant estimated profit would come around Rs 1093.7 crore in the October-December quarter.
While the revenue of the cement heavyweight jumped over 19.5 per cent to Rs 15,520 crore in the three-month period of the October-December quarter of FY23 as against Rs 12,984 crore in Q3FY22.
The top line of the cement firm was expected to come at Rs 15,505.5 crore by Zee Business research.
Domestic grey cement sales volume rose 13 per cent YoY and 12 per cent quarter-on-quarter (QoQ), respectively, the company said in its exchange filing.
UltraTech achieved capacity utilisation of 83 per cent as against 75 per cent during Q3FY22, it said.
“Given the government's focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years,” UltraTech Cement said while giving the outlook of the company.