Q4FY22 Preview: Ultratech Cement: Revenues seen at Rs145,490 million, EBITDA/t at Rs1,037 per ton

28 Apr 2022 , 12:20 PM

Result date: 29^th April, 2022
Recommendation: Buy
Target price: Rs7,750

Ultratech Cement is likely to post strong performance on a sequential basis. Volume growth of 19.1% could drive 16.7% sequential increase in revenue even as realizations per ton have dipped 2%.

Company was not able to fully pass on the input cost pressure (power and fuel), as reflected in lower realizations per ton. However, cost rationalization efforts as well as operating leverage benefits will drive traction in EBITDA, EBITDA per ton.

Important management insights to watch out for:
·         Outlook on demand across all segments and markets
·         Trends in capacity utilization
·         Trends in input cost inflation, pricing action planned and margin levers in place
 

	March 2022 estimates	YoY change	QoQ change
Revenue (Rs Million)	145,490	4.2%	16.7%
EBITDA (Rs Million)	27,157	(22.7)%	22.2%
EBITDA (Rs/t)	1,037	(21.5)%	2.7%

Source: IIFL Research