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 production costs of cement firms, they said.
