UltraTech Cement shares slide almost 5% from day's high after second-quarter results

what happened

Moneycontrol reports that shares of UltraTech Cement, India's largest cement producer by capacity, fell almost 5% from their intraday high on October 19. The drop followed a September-quarter report in which profit growth came in below expectations, as higher raw material costs weighed on results despite strong volume growth. At the time of the report, the shares were trading 2.3% lower at Rs 10,664, against a day's high of Rs 11,219.

Consolidated net profit for the three months ended September 30 rose 21.3% to Rs 1,494 crore, below the Rs 1,705 crore analysts expected, per LSEG data. Revenue from operations climbed 18.8% to Rs 23,295.1 crore, while profit before interest, depreciation and tax rose 17.3% to Rs 3,832 crore.

Domestic grey cement volumes grew 13.8% to 35.94 million tonnes, and capacity utilisation improved to 71% from 66% a year earlier. The company credited disciplined execution, a wider market footprint, cost optimisation and a stronger focus on premium products, despite a monsoon-affected period and the ongoing West Asia crisis.

why it matters

The report shows volume growth supporting revenue, while dearer raw materials limited profit. For the cement sector, demand looks firm, but cost pressure continues to squeeze margins, so investors will watch input cost trends closely in coming quarters.

market impact

Indian cement sector: strong volumes, but costlier raw materials pressure UltraTech's margins

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