Ultratech Cement’s standalone net profit jumped 11 per cent to Rs 681 crore in the March quarter, in line with estimates. India’s biggest cement producer also posted a 15 per cent jump in cement volume, beating estimates.
However, realisation dropped more than expected, so revenue growth stood at 5 per cent at Rs 6,504 crore despite strong volume growth, analysts said.
Reduction in operating cost, judicious fuel mix and fall in fuel prices aided Ultratech’s Q4 profit, the company said.
“Cement demand is expected to grow 7-8 per cent for next year on the back of the governments’ focus on infrastructure development, housing, smart cities etc., all of which augur well for the company,” Ultratech Cement said in a release to Bombay Stock exchange.
Angel Broking termed Ultratech’s Q4 as “impressive”, citing 15 per cent volume growth. The brokerage has an “accumulate” rating on the stock.
Ultratech Cement shares closed 0.52 per cent higher at Rs 3,288 compared to 0.62 per cent fall in the broader Sensex.