UltraTech Cement, India’s largest cement manufacturer, saw its stock price fall on Monday, underperforming the overall market. Despite the weakness, the company’s revenue and profit remained strong in the September quarter. In a statement, UltraTech Cement reported a 20% year-over-year increase in consolidated net sales revenue to Rs 13,427 crore (approximately $1.7 billion) and a 34% jump in net profit to Rs 1,853 crore (approximately $236 million). The company attributed the strong performance to robust demand in its key markets, including India and Bangladesh.
Despite these positive results, UltraTech Cement’s stock price declined by 2.2% to Rs 6,315 (approximately $81.50) in Mumbai trading. The company’s peers, including Shree Cement and Grasim Industries, also traded lower, as the sector as a whole was weighed down by concerns over inflation and supply chain disruptions. Analysts at HDFC Securities said the decline was likely due to the market’s increased focus on inflationary pressures and the likelihood of monetary policy tightening, which could impact the company’s pricing power and margins.