After a robust growth last fiscal, UltraTech Cement is expected to remain flat on the back of unfavorable market conditions.
On a year-on-year basis, net profit and revenue are seen rising 2 per cent and 1 per cent, according to various research reports.
The company will announce its financial results on Friday.
Following a steep price hike in the previous quarter, the demand in the June quarter plateaued. Moreover , supply in reased after companies ramped up capacity at the newly acquired assets.
Hikes implemented in April were reversed during May and June due to soft demand and stiff competition.
Blended realisation of UltraTech may decline around three percent YoY, said at Motilal Oswal research report.
The company’s growth stayed at a higher single digit after a very strong Q4 FY24 as it focused on retaining prices higher than its peers, said BOBCAPS.
“Volume growth of around 8.5 per cent is despite strong competition from the peer set. Operating efficiencies are likely to move margins into positive territory,” it said.
Parth Shah, Research Analyst, StoxBox said following a robust cement demand during FY24, there was some softness during April and May majorly due to factors such as general elections, extreme heat conditions and lack of labour availability on a pan-India basis.
“We expect UltraTech to post a marginal annual growth in revenues in Q1FY25. The realizations are set to be moderate compared to the previous quarter following pricing headwinds observed from the past quarter,” he said.
On the operating costs front, the pet coke prices have seen a downtrend during the previous quarters and are expected to remain neutral during the coming quarter as well, he added.