UltraTech Cement Q3 Results Review - Higher Utilisation Comforting; Profits To Improve: Motilal Oswal

Motilal Oswal Report

UltraTech Cement Ltd. reported consolidated Ebitda of Rs 23.4 billion (estimated Rs 24.2 billion) and Ebitda/tonne of Rs 903 (estimated Rs 945).

Adjusted profit after tax stood at Rs 10.6 billion (down 10% YoY; 5% below our estimate). Lower-than-estimated realisation increase and unexpected increase in variable costs resulted in an earnings disappointment.

UltraTech Cement expects a strong demand environment and utilisation levels at 95-100% in Q4 (92% in Dec-22).

We had highlighted in our sector update that industry clinker utilisation levels should be at 89% in Q4, which ideally should drive up profits improvement for the industry.

We cut our FY24/FY25 earnings per share estimate by 5% (each). We are optimistic on the stock, given robust expansion plans, structural cost improvement (increasing green energy share and logistics cost optimisation) and strong balance-sheet (net-cash positive in FY25E).

Click on the attachment to read the full report:

More Research Reports On UltraTech Cement's Q3 FY23 Results Reviews

• Margins Up Despite Input Cost Pressure: Systematix

• Higher Than Expected Energy Costs Lead To Miss: ICICI Securities

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.