UltraTech Cement Q2 Preview: Cons PAT may surge 70% YoY on strong sales, margin growth
UltraTech Cement report robust earnings for the quarter ended September 2023.
The country’s largest cement-maker is likely to report a 70% year-on-year (YoY) growth in consolidated net profit for the quarter to Rs 1,286 crore, according to the average of estimates given by 10 brokerages.
Consolidated revenue from operations is likely to grow 12.4% on year to Rs 15,610 crore. The Aditya Birla Group’s flagship company will release its earnings on Thursday.
Here’s a summary of analysts’ expectations from the company:
Axis Securities
Volume to grow 16% on a YoY basis, led by better demand and new capacity ramp-up.
Revenue to be 13% higher YoY due to higher volumes.
Gross margin to be higher by 280 bps, owing to easing cost pressure. EBITDA margin to be higher by 370 bps owing to higher volume and easing cost pressures.
Higher revenue and lower costs are likely to drive the profit by 85% YoY.
EBITDA/tonne will be higher YoY on the back of lower cost and higher volumes.
However, realizations will be lower. The cost/tonne is also likely to be lower YoY.
Motilal Oswal Securities
Sales volume (consolidated) to increase 16% YoY, driven by capacity expansion. RMC revenue is expected to increase by 3% YoY, and white cement revenue is projected to increase by 7% YoY.
Expect EBITDA/tonne at Rs 905 vs Rs 808/Rs 1,018 in 2QFY23/1QFY24.
Variable cost per tonne is expected to decline 8% YoY (4% QoQ). Opex/tonne is estimated to decline 5% YoY (up 1% QoQ).
EBITDA is estimated to grow 29% YoY and operating margin is likely to improve 2 percentage points YoY to 15.5%.
Net profit is estimated to jump 60% YoY due to lower tax (opted for the new tax regime) and higher other income.
Kotak Institutional Equities
Factor in volumes of
