UltraTech Cement Q2 Results FY2023, PAT at Rs. 756 crores

On 19th October 2022, UltraTech Cement announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- Net Sales was reported as Rs.13,596 crores, with a growth of 15.8% YoY.
- Profit before tax was Rs.1,103 crores, with a drop of 43.3% YoY
-  Profit after tax was Rs. 756 crores, with a drop of 42.5% YoY.

Business Highlights:

- According to the company, the second quarter was traditionally a weak one for the cement sector, with lower demand as construction activity slows down on account of the monsoons. Demand was low during July and August 2022, showing some sign of revival in September 2022. 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. Institutional demand was led by increased construction activity after the receding monsoons. 
- UltraTech achieved capacity utilization of 76% as against 71% during Q2FY22. Domestic sales volume grew 9.6% YoY, despite heavy monsoons throughout the quarter. 
- During the quarter, the Company commissioned 1.3 mtpa brownfield capacity at Dalla, Uttar Pradesh, taking the total capacity in India to 115.85 mtpa and 121.25 mtpa globally.
- In the second half of this year, the Company will commission another 15.4 mtpa of greenfield / brownfield expansion and start the next financial year with a capacity of 131.25 mtpa in India

Post results the Ultratech Cement share price dropped by 1.5%