Ultratech Cement Ltd (Q2 FY14)

India Infoline News Service | Mumbai |

UCL OPM contracted by 680bps yoy as against our estimate of 310bps.

CMP Rs1,960, Target Rs1,765, Downside 9.9%
 
  • Volume de-growth coupled with lower realization translate into a 4% yoy drop in revenues

  • Average realization drop of 3% yoy (1% qoq) impacted by prolonged monsoon

  • OPM contracts by 687bps (against our expectation of 310bps drop) on back of surge in  RM, Personnel and Power cost

  • PAT de-grew by 52% yoy; higher finance and depreciation cost further add pressure on bottom-line

  • Maintain Market Performer rating with 9-12 mth price target of Rs1,765

Result table*
(Rs mn)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Net sales
45,021
46,996
(4.2)
49,575
(9.2)
Other operating income
198
279
(29.0)
227
(12.8)
Material costs
(7,568)
(6,518)
16.1
(7,803)
(3.0)
Personnel costs
(2,844)
(2,395)
18.8
(2,507)
13.5
Power and fuel costs
(9,566)
(10,741)
(10.9)
(9,896)
(3.3)
Freight cost
(9,942)
(9,292)
7.0
(11,018)
(9.8)
Other overheads
(8,504)
(7,975)
6.6
(7,860)
8.2
Operating profit
6,795
10,352
(34.4)
10,718
(36.6)
OPM (%)
15.0
21.9
(687 bps)
21.5
(649 bps)
Depreciation
(2,573)
(2,324)
10.7
(2,521)
2.1
Interest
(888)
(600)
47.9
(660)
34.4
Other income
376
406
(7.4)
1,656
(77.3)
PBT
3,711
7,835
(52.6)
9,192
(59.6)
Tax
(1,070)
(2,334)
(54.2)
(2,466)
(56.6)
Effective tax rate (%)
28.8
29.8
(96 bps)
26.8
200 bps
Adjusted PAT
2,641
5,501
(52.0)
6,726
(60.7)
Ann. EPS (Rs)
38.5
80
BSE 4,348.00 92.20 (2.17%)
NSE 4,311.80 43.60 (1.02%)

***Note: This is a NSE Chart

 

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