Ultratech Cement Q3 FY22 Preview: Revenues seen at Rs121,337 million, Ebitda at Rs25,597 million

17 Jan 2022 , 09:24 AM

Ultratech Cement‘s revenue is expected to grow 2.6% YoY and 5.1% QoQ at Rs121,337 million. Large part of this growth will come from an increase in realizations (up 8.0% YoY), even as domestic volumes declined 5% on a YoY basis.

On a sequential basis though realizations remained flattish (down 0.7%), while volumes grew 5.8%.

Demand recovery remained subdued during the quarter. Heightened cost pressures and reversal of price hikes are likely to pull down the company’s EBITDA/t. Ebitda is estimated at Rs25,597 million, down 13.1% YoY.

During the quarter, the company has commissioned cement capacity of 1.2mtpa at two of its plants (0.6mtpa each) in the eastern region, which augur well for its long term growth.

Important management insights to watch out for:

· Demand trends and impact of the third wave of the pandemic

· Outlook on margins

	December 2021 estimates	QoQ change	YoY change
Volumes (m MT)	21.7	5.8%	(5.0%)
Revenue (Rs. mn)	121,337	5.1%	2.6%
Ebitda (Rs. mn)	25,597	(1.5%)	(13.1%)
Ebitda (Rs/t)	1,181	(6.9%)	(8.5%)
Realization (Rs/t)	5,597	(0.7%)	8.0%

Source: IIFL Research, Company