UltraTech Cement, India’s largest cement producer, has posted a 42.46% fall in consolidated net profit at Rs 756 crore during the seasonally-weak September quarter, impacted by a slowdown in construction activities.

The company’s earnings fell below consensus analysts’ estimate by Bloomberg, who were expecting the firm to post a consolidated net profit of Rs 1,079.90 crore (9 brokers).

In comparison, the Aditya Birla group company had posted a net profit of Rs 1,314 crore for the same quarter a year-ago.

During the quarter under review, UltraTech Cement’s net sales rose 15.78% to Rs 13,596 crore, compared with Rs 11,743 crore posted during the same quarter a year ago. However, its profit before interest, depreciation and tax fell to Rs 2,013 crore from Rs 2,855 crore posted during same period last year.

The second-quarter is traditionally a weak one for the cement sector, with lower demand as construction activity slows down on account of monsoon. Demand was low during July and August, but showed some signs of revival in September, the company said in a statement.

Pick-up in retail segment was on the back of pent-up demand accumulation during the monsoon, pre-Diwali construction and repair work gaining momentum. Institutional demand was led by increased construction activity after the receding monsoon, it added.

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Year-on-year, the company’s energy cost rose 58% and raw material prices rose 18%, while domestic sales volume grew 9.6%, despite heavy monsoon. In Q2, it achieved capacity utilisation of 76%, up from 71% in the second quarter of previous fiscal.

During the quarter, UltraTech commissioned 1.3 MTPA brownfield capacity at Dalla, Uttar Pradesh, taking its total capacity in India to 115.85 MTPA, and that globally to 121.25 MTPA.

In the second half of this year, UltraTech Cement will commission another 15.4 MTPA of greenfield and brownfield expansion and start the next financial year with a capacity of 131.25 MTPA in India.

Work on the second phase of growth of 22.6 MTPA announced during the first quarter has already commenced. Main plant orders have been placed and civil work started at some sites. Commercial production from these new capacities is expected to go on stream in a phased manner by FY25.

Upon completion of the latest round of expansion, the company’s capacity will grow to 159.25 MTPA, reinforcing its position as the third-largest cement company in the world, outside of China, it added.