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UltraTech Cement Ltd.’s second quarter net profit tumbled amid a slowdown in demand, even as the stock gained after results were announced.
The cement-maker’s net profit fell 43% year-on year to Rs 755.73 crore in the three months ended September, according to its exchange filing. That compares with the Rs 1,079.90-crore consensus estimate of analysts tracked by Bloomberg.
UltraTech Cement Q2 FY23 Key Highlights (YoY)
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Revenue rose 15% to Rs 13,893 crore, against the Rs 13,351.47-crore forecast.
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Operating profit declined 31% to Rs 1,866.64 crore.
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Ebitda margin contracted to 13.4% from 22.6% a year ago. Analysts had pegged the metric at 15.2%.
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Other income jumped to Rs 146.26 crore from Rs 140.05 crore.
Demand was low during July and August, though showing signs of revival in September, it said.
Pick-up in retail demand was on the back of pent-up demand accumulation during the monsoons, pre-Diwali construction and repair work gaining momentum, and pre-election tailwinds, it said.
The company achieved capacity utilisation of 76% as against 71% in the corresponding quarter of the previous year.
Shares of UltraTech gained 0.81% after the results were announced compared with a 0.14% rise in the benchmark Nifty 50.
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