UltraTech Cement beats Q4 profit forecasts amid volume surge

UltraTech Cement Q4 profit:  UltraTech Cement, exceeded fourth-quarter profit projections on Monday, buoyed by increased sales volumes driven by reduced prices of its construction materials.

For the quarter ending March, the company reported a consolidated net profit surge of 35.5 per cent to $270.5 million, surpassing analysts' average forecast of Rs 280 crore. This marks UltraTech's highest quarterly profit in two years.

In line with the traditionally robust January-March period, cement producers offered discounts to meet fiscal year-end volume targets amidst intense competition, albeit at the expense of lower cement prices, which dipped 5 per cent sequentially, hitting a two-year low.

UltraTech witnessed an 11 per cent increase in sales volumes during the fourth quarter across India, aligning with analysts' estimates of 9 per cent to 12 per cent growth.

This surge propelled the Aditya Birla Group's revenue from operations to a 9.4 per cent rise, reaching Rs 20,419 crores—the highest since at least the June quarter of fiscal 2014—surpassing street expectations.

Indian cement manufacturers have reaped the benefits of robust infrastructure and property sector demand in recent quarters. However, analysts anticipate subdued demand in the first half of fiscal 2025, attributed to general elections and a potentially favourable monsoon season.

Conversely, an uptick in freight and input costs contributed to a 6.7 per cent increase in total expenses.

UltraTech's shares, which saw a 2 per cent rise ahead of the earnings announcement, settled 2.7 per cent higher following the release of results.

(with Reuters inputs)