UltraTech Q2 result to be announced today. Here's what brokerages are expecting
UltraTech Cement Q2 resuts: The country’s largest cement producer is going to report its Q2 financial performance today. Amidst strong cement demand in the country UltraTech is likely to report good volume growth. Though July-September is a seasonally weak quarter impacted by monsoon activity.
Nevertheless, erratic rainfall this year has also meant that cement demand though did not get impacted much this year compared to last year. Sales volume on a sequential basis still may remain lower as the April-June quarter is a seasonally strong quarter for construction activities. For UltraTech regular capacity expansions are also likely to help drive volumes.
As per UltraTech its consolidated sales volume for the quarter ended 30th September 2023 stood at 26.69 million tonne (MT) up 16% year-on-year. The domestic sales volumes at 25.66 mt were up 15% year-on-year. Also Read- Day trading guide for today: Six stocks to buy or sell on Thursday — October 19 The realisations though are likely to get support from Cement price hikes during the quarter, blended realisations may still be slightly lower sequentially for UltraTech as per some analysts' expectations.
Also, the costs may see some decline as the impact of softening raw material and fuel costs in earlier quarters may be felt now. Analysts at MOFSL said that cost pressure in 2QFY24 subsided as fuel prices (both imported petcoke and coal) declined 5% sequentially. However rising crude prices are aiding rise in pet coke prices, that have been inching up since July and impact may still be felt in ongoing quarter (Q3).
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