UltraTech Cement’s (UTCEM) Q2FY22 consolidated EBITDA at Rs27.1bn (flat YoY) is broadly in line with consensus estimates. Consolidated volumes grew 8% YoY to 21.6mnte while EBITDA/te declined 7% YoY and 18% QoQ to Rs1,254/te due to various cost escalations. While investor’s concern around sharp cost increases seems valid, industry has demonstrated strong pricing resilience in the past. Our recent channel checks suggest companies have increased prices by Rs15-20/bag across regions.