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Systematix Research Report
UltraTech Cement Ltd.'s Q3 FY23 revenue at Rs 155 billion rose 19.5% YoY and 11.7% QoQ, 6.9% above our estimate. Sales volume at 25.86 million tonne was up 11.8%/ 11.9% YoY/QoQ, 8.7% above our estimate.
Net sales realisation at Rs 6,002/tonne was up 6.9%/flattish YoY/QoQ, broadly in line with our estimate. Ebitda in absolute terms stood at Rs 23.4 billion, down 3.4% YoY but up by 25.3% QoQ, 10.9% higher than our estimate.
Blended Ebitda/tonne at Rs 903 fell by 13.6% YoY, but was up 11.9% versus our estimate of Rs 885/tonne.
UltraTech Cement was unable to derive much benefit from the lower fuel costs (petcoke and coal) seen in the last few months due to its high-cost inventory and the increase in exchange rate. Power and fuel cost/tonne stayed high at Rs 1,884 (up 35.3% YoY and up 1.3% QoQ).
We attribute the rise in freight cost/tonne of Rs 1,345 (up 7% YoY and up 2.1%) to the imposition of busy season surcharges arising from railway freight. Raw material cost/tonne fell by 2.6% YoY and remained flattish QoQ, primarily due to the increase in clinker ration, even though the cost of fly ash was higher.
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