UltraTech Cement Q3 Results Review - Margin To Further Improve: IDBI Capital
Ultratech Cement's Q3 FY23 (consolidated) Ebitda came in line with consensus estimate.
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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.
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