UltraTech Cement - Well-Positioned To Capitalise On Demand Tailwinds; Maintain 'Buy': Axis Securities

Axis Securities Report

In FY23, UltraTech Cement Ltd. recorded a net revenue of Rs 63,240 crore. Most notably, it also achieved the distinctive milestone of producing, dispatching, and selling 100 million tonnes, which was supported by the company’s effective capacity utilisation rate of 84% for the year.

The company reported an Ebitda of Rs 10,620 crore in FY23, which stood 8% lower than the previous year’s Ebitda. Lower operating profits were on account of higher input costs, which were only partly offset by volume growth and better sales realisations.

UltraTech Cement continued to focus on ensuring demand sustainability and made significant strides in de-carbonisation, energy transition, water management, biodiversity and energy management to achieve the same.

It added 43 mega watt of waste head recovery system capacity during the year, takingthe total WHRS capacity to 210 mega watt. WHRS now covers 16% of the overall power needs of the company and it aims to reach 300 mega watt of WHRS capacity by the end of FY24 post completion of the ongoing expansions.

UltraTech Cement has substantially reduced its net debt/equity and net debt/Ebitda from 0.65 times and 2.83 times in FY18-19 to 0.05 times and 0.24 times in FY2022-23.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.