Soft demand weighs on UltraTech's Q3 volumes; misses Street expectations

Declining costs, recent uptick in cement prices, improving utilisation levels and turnaround of acquisitions should drive future performance

The impact of soft cement demand was visible on UltraTech’s December quarter (Q3) sales volume, which fell 4 per cent year-on-year (YoY) to 20 million tonnes (mt). This was lower than the 21-22 mt estimate by Motilal Oswal Financial Services, causing UltraTech to miss the Street’s expectations.

Average cement realisations were in line with expectations at Rs 4,612 a tonne, up 5.4 per cent YoY and down 3.3 per cent sequentially. With demand remaining soft, the all-India price of a 50 kg cement bag fell 3 per cent sequentially, while on a YoY basis it remained higher, given the steep price