UltraTech Cement hits 52-week low post September

Shares of UltraTech Cement hit a 52-week low of Rs 3,488, down 3.3% on the BSE, after the company reported 11% year on year (Y-o-Y) decline in its consolidated net profit at Rs 3.76 billion in September quarter (Q2FY19), due to higher operating cost. The cement major had a profit of Rs 4.24 billion in the same quarter last fiscal. The stock lost 6.5% in past two trading days. Net sales during the quarter under review grew 20% at Rs 81.11 billion from Rs 67.52 billion over the previous year, on back of strong volume growth. EBITDA per tonne was Rs 769 against Rs 985 in the past year and Rs 848 in the previous quarter. “Domestic sales volumes jumped 21% over Q2FY18. However, rising energy and logistics cost coupled with rupee depreciation resulted in cost increasing by 14% as compared to Q2FY18, bringing down profits as compared to the previous year,” UltraTech Cement said in a statement. Going forward, management expects cement price hikes from November, the recent dip in international petcoke prices to benefit P&F costs and benefit of the change in axle load norms (7-7.5%) to percolate in freight costs over the next six months.