Q3 FY23 Preview: UltraTech Cement: Revenues seen at Rs 150,288 million; EBITDA at Rs 20,897 million

19 Jan 2023 , 01:38 AM

Result Date: 21^st January, 2023

Recommendation: BUY

Target Price: Rs 8,050

Ultratech Cement could post revenue growth of 20.5% over the year-ago quarter.

Analysts at IIFL Capital Services forecast that profitability of Ultratech Cement will improve in December quarter on Quarter-on-Quarter (Q-o-Q) basis. This improvement will be driven by higher volumes and better realizations. Higher input cost pressure will remain. That will put pressure on improvement in profitability on Year-on-Year (Y-o-Y) basis. Outlook for the company is positive. The company will benefit from the arrival of peak construction period.  Lower crude oil prices and higher domestic coal production will lower the input cost pressure on the company. EBITDA is forecasted to come down Y-o-Y by 5.9%.

Important management insights to watch out for:

• Demand trends across markets, product segments
• Outlook on input cost inflation, pricing action
• Margin drivers

 

	December quarter estimate	Y-o-Y	Q-o-Q
Volume (million MT)	24.6	11.7%	10.6%
Realization (Rs / t)	6,065	7.9%	0.8%
Revenues (Rs mn)	150, 288	20.5%	11.5%
EBITDA (Rs mn)	20,897	-5.9%	21.8%
EBITDA  (Rs/t)	850	-15.8%	10.1%
Source: IIFL Research