UltraTech Cement Q3 Result Preview: Lower costs, better realizations to aid profitability improvement, earnings
₹370 were higher compared to ₹357 in the previous quarter and ₹359 in the year ago quarter. The quarter also saw some moderation in raw material costs. Though demand in certain pockets and regions saw temporary impact due to state elections, labor availability in festive season, rains and floods in the South India, and construction bans in Delhi NCR and some other regions to curb pollution.
Overall demand trend in the country remains strong and is expected to pick pace. Also Read- Reliance share price dips ahead of Q3 results today. Opportunity to buy? It is the better realizations .lower costs are likely to support earnings for Cement manufacturers as UltraTech UltraTech already had announced its volume growth numbers.
The Sales volume in the domestic markets for UltraTech during the quarter at 26.06 9million ton) grew 5% year on year and 2% sequentially. Consolidated sales volume for UltraTech (including overseas) at 27.32 were up 6% year on year and 2% sequentially. Analysts at Motilal Oswal Financial Services estimate blended realization to increase 3% year on year and sequentially too.
Hence the net revenues at around ₹16810 Crore are estimated to rise 8.3% year on year. The Ready-mix Concrete (RMC) revenue is expected to increase 26% year on year and the white cement revenue is expected to increase 18% YoY With raw material costs on the decline, the operating performance is likely to get a further boost. Variable cost per tonne is expected to decline 10% year-on-year (4% sequentially).
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