Weak Demand and Prices: The overall cement industry witnessed slow volume growth and soft demand in Q1 .
Squeezed Margins: Increased competition and rising input costs are expected to put pressure on profit margins . Even though revenue might hold up somewhat, profitability could be impacted.
Industry Trend: Analysts predict a decline in net profits for most major cement companies, including UltraTech (though with a smaller dip compared to peers) .
UltraTech reported their Q1 results on July 12th, 2024. Here’s what actually happened:
Revenue: Total income did fall by 4.96% compared to the previous year .
Profit: Profit after tax saw a marginal increase of 1.35%, but operating profit dropped by 10.18% . This indicates they were able to maintain profitability but with reduced margins as predicted.