UltraTech Cement share price extends gains after strong Q4 results. Should you buy, sell or hold the cement stock?
₹10,200 apiece on the BSE. UltraTech Cement Q4 results were announced on Monday and the stock had ended 2.7% higher during the session. The country’s largest cement manufacturer reported strong earnings for January-March quarter as its consolidated net profit rose 36% to ₹2,258 crore from ₹1,666 crore year-on-year (YoY), beating estimates, led by a decline in fuel costs and double-digit volume growth.
The company’s consolidated revenue from operations in Q4FY24 increased 9.4% YoY to ₹20,419 crore. At the operating level, EBITDA was at ₹4,250 crore, with a margin of 20.81%. “The company’s imported fuel consumption cost during Q4FY24 was 13% lower than Q4FY23, and it remained flat QoQ.
Effective capacity utilization was 98% during the quarter and 85% for the full year," UltraTech said in a statement. Read here: UltraTech's Q4 net profit rises 36% y-o-y on lower fuel costs; beats estimates Going forward, the demand for cement across all sectors continues to remain robust, which augurs well for the company, it added. Here’s what brokerages have to say on UltraTech Cement Q4 results and UltraTech Cement share price: UltraTech Cement reported an extremely good set of results as reported EBITDA came in 11% ahead of estimates.
Contrary to some of the other peer companies which have reported numbers as of now, Ultratech’s EBITDA/mt was flat on QoQ basis compared to our estimate of ₹150/mt drop. Better than expected blended realizations (owing to higher RMC revenue) and improved costs resulted in an earnings beat, Centrum Broking said. It believes Ultratech Cement is likely to strengthen its numero uno position through better market share and industry leading profitability.
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