UltraTech Cement Q1FY25: Key highlights

19 Jul 2024 , 03:46 PM

UltraTech Cement reported a weak set of financial results for the first quarter of FY25, with consolidated net profit remaining nearly flat on a year-on-year basis at ₹1,695 Crore, compared to ₹1,690 Crore in the same period last year. This performance fell short of market expectations, leading to a decline in the company’s share price.

Financial Performance

• Net Profit: ₹1,695 Crore (flat YoY)
• Revenue: ₹18,069 Crore (up 2% YoY)

Factors Affecting Demand

• General Elections: The electoral activities impacted labor availability due to migration related to the elections.
• Labor Shortage: Election-related migration caused a shortage of labor.
• Heatwave: Extreme weather conditions affected construction activities and thus demand for cement.
• Economic Slowdown: Certain states experienced an economic slowdown, further dampening cement demand.

Market Reaction

Following the release of the quarterly results, UltraTech Cement shares extended their decline, falling by 3.2% to ₹11,271 in afternoon trade on the NSE.