UltraTech Cement falls after Q3 earnings but brokerages remain positive on the stock

Following the release of the company's third-quarter numbers, domestic brokerage firms remained bullish on the stock, citing the company's strong fundamentals and growth drivers. Brokerage house IDBI Capital maintained its ‘buy’ rating on the stock with a revised target price of ₹7,965 apiece.

Q3 Earnings Preview: Cement companies' woes likely to continue as input costs eat into profitability

The raw material costs continued to remain a major concern for the cement sector for Q3FY23. The petcoke and coal prices in both domestic and international markets were still higher compared to the long-term average but corrected in the past couple of months.

Major cement companies report net loss amounting to 40-90% in Q2 on higher costs

For the September-ending quarter, cement Major Ultratech Cement posted a 42% drop in its consolidated net profit to ₹755.7 crore from ₹1,310.3 crore in the same quarter last year. The total expenditure of the company jumped nearly 30% to ₹12,026 crore in Q2 from ₹9,302 crore.

Ultratech Cement: Brokerages stay bullish despite a fall in net profit; Here are the key reasons

ICICI securities said that Ultratech Cement's strong strategic growth plan, a prudent approach to generating higher cash flows and capex while maintaining a strong balance sheet would keep it ahead in the league.

Profitability of cement companies is set to fall by 15% due to high input costs: Report

Petcoke is widely used by the cement industry. The surge in petcoke prices has led to huge uncertainty in terms of costs and margin recovery for cement companies. And the rise in oil prices has resulted in higher fuel prices, resulting in increased freight expenses.

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UltraTech Cement falls after Q3 earnings but brokerages remain positive on the stock

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