UltraTech profit falls 7% due to increased fuel and power costs hit

Beats first quarter estimate despite decline on both YoY and sequentially

UltraTech, the country's largest cement maker, on Friday reported nearly 7 per cent year-on-year decline in net profit to Rs 1,584 crore for the quarter ended June 31, 2022 (Q1). Sequentially, too, it plummeted 39.5 per cent.

This was because the bottom-line was hit by a sharp rise in power and fuel costs. Power and fuel costs, along with freight and handling, account for 55-60 per cent of the total cost for cement companies on a per-tonne basis, according to sector analysts. 

The prices of both pet coke and thermal coal have risen sharply over the past few months, putting pressure on