UltraTech Cement Q1 Review - Cementing Its Leadership Position: Motilal Oswal

UltraTech Cement Q1 Review - Cementing Its Leadership Position: Motilal Oswal

<div class="paragraphs"><p>A handyman prepares cement mix. (Source: freepik)</p></div>
A handyman prepares cement mix. (Source: freepik)

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Motilal Oswal Report

UltraTech Cement Ltd. beat the street and our Ebitda estimate, led by higher sales volumes and better cost management (standalone variable cost increased by Rs 135/tonne versus our estimate of Rs 210/tonne).

Consolidated Ebitda stood at Rs 31 billion (versus Bloomberg/our estimate of Rs 25.7-28 billion/Rs 28 billion).

Operating profit margin stood at 20.4% (our estimate: 19.2%). Adjusted profit after tax stood at Rs 16 billion (our estimate: Rs 14 billion).

Given the better demand scenario, UltraTech Cement remained optimistic about the industry’s long-term growth prospects.

Though there could be a fall in margin in Q2 due to lower cement prices (June-exit price down 3-5% versus Q1 FY23 average) and cost inflation (full impact of higher energy prices), we expect margin to gradually recover from Q3 FY23.

Click on the attachment to read the full report:

Motilal Oswal UltraTech Cement Q1FY23 Result Update.pdf


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