India's Ultratech Cement on Friday reported first-quarter profit above expectations, as strong domestic demand offset higher raw material costs.
The top cement maker's consolidated profit for the quarter ended June 30 rose 6.6 per cent per cent to Rs 1,688 crore ($205.8 million) from Rs 1,584 crore billion rupees a year ago.
Analysts, on average, expected the company to post a profit of Rs 1,633 crore, according to Refinitiv data.
The Mumbai-based company's revenue from operations rose nearly 17 per cent to Rs 177,37 crore.
Prices of raw materials rose 6 per cent, with key ingredients like fly ash and slag ballooning, while energy costs increased 3 per cent, the company said.
On July 3, Ultratech reported a 20 per cent year-on-year rise in its Q1 grey cement sales at 28.6 million tons.
Analysts had expected increased demand for cement in infrastructure projects by the country's government to drive the company's growth in the latest quarter.
Demand for cement will remain strong across segments, while higher infrastructure spending ahead of general elections in 2024 is expected to further propel cement demand during this fiscal year, the company said in a statement.
On Thursday, smaller rival Dalmia Bharat reported a near-34 per cent fall in Q1 profit due to a rise in raw material prices.
Ultratech shares remained little changed after the results were announced.