India’s UltraTech Cement tops Q2 revenue estimates; shares rise

BENGALURU (Reuters) -India’s UltraTech Cement reported higher-than-expected second-quarter revenue on Thursday, aided by market share gains and higher government spending on infrastructure.

The news pushed shares of the Aditya Birla Group-backed company up 3% on Thursday.

Revenue rose 15.3% to 160.12 billion rupees for the three months ended Sept. 30, topping analysts’ average estimate of 158.39 billion rupees as per LSEG data.

The cement maker said in a statement it has also been gaining from an uptick in rural development and urban residential demand.

Earlier this month, UltraTech reported a 15% increase in second-quarter domestic sales of grey cement, which according to HSBC Global Research, helped it gain market share for the sixth straight quarter.

The company, however, missed profit estimates due to a 12% rise in expenses.

Consolidated net profit for the second quarter rose 69.5% to 12.81 billion rupees ($153.8 million), falling short of the analysts’ average estimate of 13.82 billion rupees.

($1 = 83.2775 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Varun H K)