UltraTech Cement Q3 Result Preview

UltraTech Cement Q3 Result Preview

VoM News Desk | January 19, 2024 | 11:42 AM IST | Breaking News | Follow on Google News

UltraTech Cement Q3 Result Preview /Mint

UltraTech Cement Q3 Result Preview

UltraTech Cement, India’s largest cement manufacturer, is set to announce its financial performance for the quarter ending December 2024. The industry dynamics reveal a rise in cement prices, albeit moderated post the festive season. Despite temporary impacts from state elections, labor availability, and regional challenges, the overall demand trend in the country remains strong.

Q3 Expectations:

• Sales Volume: UltraTech has already reported a 5% YoY growth and 2% sequential growth in domestic sales volume, totaling 26.06 million tons. Consolidated sales volume, including overseas, stands at 27.32 million tons, up 6% YoY and 2% sequentially.
• Blended Realization: Analysts expect a 3% YoY and sequential increase in blended realization.
• Net Revenues: Estimated to reach around ₹16,810 Crore, reflecting an 8.3% YoY growth.
• Segment Revenue: Ready-mix Concrete (RMC) revenue expected to increase by 26% YoY, and white cement revenue anticipated to grow by 18% YoY.
• Costs: With a decline in raw material costs, variable cost per tonne is expected to decrease by 10% YoY and 4% sequentially.
• Operating Performance: Operating Expenses per tonne expected to decline by 4% YoY and 3% sequentially.
• Ebitda: Anticipated to grow by 45% YoY, with operating margins surging 5 percentage points YoY to 20%. Ebitda per tonne estimated at ₹1,236.
• Net Profits: Expected to reach ₹1,910 Crore, reflecting an 80.9% YoY growth.

While Elara Securities India Pvt Ltd predicts a net profit growth of 60%, Kotak Institutional Equities factors in a 32% YoY and 26% sequential increase in Ebitda per ton. The quarter’s performance is expected to be driven by better realizations, lower costs, and strong overall demand.

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