India's UltraTech Cement reported third-quarter earnings on Friday that exceeded Street forecasts, helped by increases in the cost of its building supplies due to ongoing demand for infrastructure.

The total net profit increased by over 68% to Rs 1,777 crore ($214 million), the highest level since the March 2022 quarter. Based on LSEG data, analysts projected an average profit of Rs 1,730 crore.

According to LSEG figures, revenue from operations increased by around 8% to Rs 16,740 crore for the three months that ended on December 31, above analysts' average forecast of Rs 16,619 crore.

According to brokerage Systematix, cement prices in India increased 2.5% on average during the course of the quarter, enabling cement producers to increase their profit margins.

Earlier this month, UltraTech Cement, which is supported by the Aditya Birla group, reported that its volumes, including sales abroad, rose 6% to 27.3 million tonnes for the quarter. Analysts had predicted that volumes would increase by 5% to 5.6%.

The company stated that the need for infrastructure was sustained by ongoing projects like the Mumbai metro and the building of motorways in its important regions of west and central India.

Cement manufacturers have benefited from the increase in demand from the infrastructure and housing sectors, which has been made possible by government expenditure initiatives.

This is UltraTech Cement's first quarter of earnings following its $645 million acquisition of Kesoram's cement operations to strengthen its position in southern India.

According to UltraTech's most recent annual report, the area makes up the least amount of the company's overall capacity. Following the results, the company's shares increased by as much as 2.4% to reach a two-week high.