Q4FY23 Preview: UltraTech Cement: EBITDA seen at Rs 32,530 million

27 Apr 2023 , 09:54 AM

Result date: 28^th April, 2023

Recommendation: Buy

Target price: Rs 8,050

Strong volume growth (up 15% over the year-ago quarter) is likely to drive overall performance of UltraTech Cement (UltraTech) during the March 2023 quarter. Grey cement sales volumes grew 14% while white cement sales volumes grew 19% over the year-ago quarter. Strong capacity expansion and strong demand momentum are key positives for the company.

Analysts at IIFL Capital Services expect UltraTech to report record quarterly EBITDA in the last eight quarters. The company’s EBITDA per ton could come in at Rs 1,065 during the quarter.

Important management insights to watch out for:

• Outlook on demand across markets
• Margin drivers and outlook on pricing action

	March 2023 estimates	YoY change	QoQ change
Volumes (mn MT)	30.5	15.1%	23.4%
EBITDA (Rs/t)	1,065	(3.9)%	22.9
EBITDA (Rs Million)	32,530	11.0%	52.0%

Source: IIFL Research