UltraTech Cement Q3 Results Review - Margins Up Despite Input Cost Pressure: Systematix

Systematix Research Report

UltraTech Cement Ltd.’s Q3 FY23 revenue at Rs 155 billion rose 19.5% YoY and 11.7% QoQ, 6.9% above our estimate. Sales volume at 25.86 million tonne was up 11.8%/ 11.9% YoY/QoQ, 8.7% above our estimate.

Net sales realisation at Rs 6,002/tonne was up 6.9%/flattish YoY/QoQ, broadly in line with our estimate. Ebitda in absolute terms stood at Rs 23.4 billion, down 3.4% YoY but up by 25.3% QoQ, 10.9% higher than our estimate.

Blended Ebitda/tonne at Rs 903 fell by 13.6% YoY, but was up 11.9% versus our estimate of Rs 885/tonne.

UltraTech Cement was unable to derive much benefit from the lower fuel costs (petcoke and coal) seen in the last few months due to its high-cost inventory and the increase in exchange rate. Power and fuel cost/tonne stayed high at Rs 1,884 (up 35.3% YoY and up 1.3% QoQ).

We attribute the rise in freight cost/tonne of Rs 1,345 (up 7% YoY and up 2.1%) to the imposition of busy season surcharges arising from railway freight. Raw material cost/tonne fell by 2.6% YoY and remained flattish QoQ, primarily due to the increase in clinker ration, even though the cost of fly ash was higher.

Click on the attachment to read the full report:

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.