Ultratech Cement Q2 preview: Increased energy value, decrease realisation could dent numbers



NEW DELHI: is all set to report 6-12 per cent in year-on-year revenue progress for the September quarter on a double-digit bounce in gross sales. Volumes could rise 5-6 per cent YoY however Ebitda per tonne could decline attributable to improve in energy and gas prices and decrease realisation. Margins are prone to fall by 200 foundation factors, analysts stated.

Emkay World expects UltraTech to report 6.4 per cent YoY progress in web revenue at Rs 1,310.2o crore in contrast with Rs 1,230.90 crore reported for the year-ago quarter. Gross sales are seen rising 10.6 per cent YoY to Rs 11,310.80 crore from Rs 10,231 crore YoY.

“Complete volumes in India are anticipated to extend 6 per cent YoY to twenty.4 million tonnes, whereas gray cement realisation is predicted to extend 5.5 per cent YoY. Complete value per tonne is estimated to extend 7 per cent YoY. Accordingly, we estimate blended Ebitda per tonne in India will decline 5 per cent YoY to Rs 1,318,” Emkay stated.

Kotak Institutional Equities initiatives revenue after tax for UltraTech’s India enterprise at Rs 1,373.50 crore, up 12.4 per cent YoY. Gross sales are seen at Rs 11,084.20 crore.

“We anticipate 5-6 per cent sequential improve in power-fuel value and 4 per cent QoQ improve in freight prices led by greater pet coke and diesel costs within the final six months, leading to a 5 per cent QoQ improve in prices per tonne within the September quarter. We estimate cement Ebitda per tonne to say no to Rs 1,250 per tonne (down 21 per cent QoQ or down 10 per cent YoY) led by a mixture of upper variable prices and decrease realisations,” it stated.

Sharekhan sees revenue progress at 6.3 per cent and gross sales progress at 10.9 per cent. It sees working revenue margin falling 200 foundation factors YoY to 23.5 per cent from 25.5 per cent YoY.

“Decrease OPM will result in muted web earnings progress YoY,” it stated, including that Ebitda per tonnes could fall 2.7 per cent YoY to Rs 1293 crore, owing to extend in energy & gas prices.




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