UltraTech Cement Q3 Results Review - Margin To Further Improve: IDBI Capital

IDBI Capital Report

Ultratech Cement Ltd.'s Q3 FY23 (consolidated) Ebitda came in line with consensus estimate. Volume growth, driven by retail volume was strong at 11% and margin improved QoQ by 161 basis points.

Stock was weak post the management earning calls, as market was expecting a positive commentary on price hike. Having said this, for Q4 FY23 we understand margin could further improve QoQ by 300-400 bps, led by weakness in energy cost and operating leverage.

As Q4 FY23 volume growth is strong and UltraTech Cement is aiming to improve utilisation to 95-100% versus 83% in Q3 FY23. Catalyst for stock performance is continuation of price hike and capex boost from union budget.

Click on the attachment to read the full report:

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

• Higher Utilisation Comforting; Profits To Improve: Motilal Oswal

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

• Margins Up Despite Input Cost Pressure: Systematix

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.