Q3FY24 Preview: Ultratech Cement: Revenue seen at Rs. 165,670 million, PAT at Rs. 17,928 million

17 Jan 2024 , 12:13 PM

Result date: January 19, 2023

Recommendation: Buy

Target price: Rs. 11,600

(Source: IIFL Research)

Ultratech Cement could post 8% growth in revenue for December quarter versus the year-ago quarter. This growth will largely be driven by volume growth which grew 6% over the year-ago quarter (on the back of improved demand and new capacity ramp up). Blended realizations could grow by about 2%.

Lower costs and higher volumes could drive over 30% growth in the company’s EBITDA/tonne as compared to the year-ago quarter.

EBITDA margin could witness expansion, reflecting the strength in gross margin, easing costs and higher realizations.

The company’s Profit After Tax or PAT could grow 72% versus the year-ago quarter.

Important management insights to watch out for:

• Demand trends across markets
• Margin drivers from here on

Rs. Million	December 2023 estimates	QoQ change	YoY change
Revenue	165,670	4.53%	8.03%
EBITDA	32,118	28.33%	40.33%
Profit After Tax	17,928	42.60%	72.50%

Source: Brokerage Reports