UltraTech Cement Q3 Results Review - Higher Than Expected Energy Costs Lead To Miss: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.UltraTech Cement Ltd.’s Q3 FY23 consolidated Ebitda at Rs 23.4 billion (down 3.5% YoY) was below our estimate but in line with consensus. Grey cement realisation rose marginally by ~0.5% QoQ, due to:likely higher despatches in non-trade segment, andsequentially flat contribution (18.8%) from premium cement. Consolidated volumes grew ~12% YoY to ~26 million tonne (~83% capacity utilisation) implying continued market share gains for UltraTech Cement (industry is likely to report 10-11% YoY growth in Q3 FY23). Inflation in fuel cost/tonne was higher than expected and rose ~1% QoQ (impacted by a depreciating Indian rupee) versus our expectation of ~6% fall. During the quarter, UltraTech Cement added 5.5 million tonnes per annum fresh capacity in Pali (1.9 mtpa), Dhule (1.8 mtpa) and Dhar (1.8 mtpa) and reached a total capacity of ~121 mtpa. It plans to achieve ~131/154 mtpa by March 2023/March 2025 respectively in India. Based on our checks, we expect demand to strengthen in Q4 FY23E and remain robust in FY24E. UltraTech Cement equipped with higher capacity shall be better placed to serve incremental demand..Click on the attachment to read the full report:.UltraTech Cement Q3 Results: Net Profit Declines 38%, Misses Estimates.DISCLAIMERThis 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.

UltraTech Cement Q3 Results Review - Higher Than Expected Energy Costs Lead To Miss: ICICI Securities

UltraTech Cement’s Q3 consolidated Ebitda at Rs 23.4 billion was below our estimate but inline with consensus.

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