UltraTech Cement Ltd. reported a 42% drop in consolidated net profit for the second quarter to ₹756 crore from the year-earlier period on account of a rise in expenditure and lower demand.
“The second quarter is 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, showing some sign of revival in September,” the company said in a filing.
“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,” it said.
During the quarter, the company reported a consolidated net sales of ₹13,596 crore as compared to ₹11,743 crore in the same period last year, up 16%.
The company said energy cost increased 58% and raw material cost rose 18% year on year, It achieved capacity utilisation of 76% as against 71% during Q2FY22.