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Centrum Broking Report
UltraTech Cement Ltd. again reiterated its numero uno position in Indian cement industry by delivering industry leading performance both in terms of volume growth as well as profitability. The company reported 15% growth in domestic volumes and improved the Ebitda/million tonne to Rs 1,048/million tonne against Rs 903 reported in Q3 FY23.
Absolute Ebitda at Rs 33.7 billion is up 8% YoY and 42% QoQ. Overall, the company has ended FY23 on a positive note and mentioned that this quarter was all about volumes and hence pricing has been stable and not higher.
The management cautioned on cost front stating that while current petcoke and coal prices are lower, China remains a key factor in determining future coal prices.
We have tweaked our estimates based on Q4 results and are now building in slightly higher volumes as well as costs. As a result, our revenue estimates for FY24E and FY25E are higher by 2.5% and 2.9% respectively, whereas Ebitda estimate is down by 5.1% each in FY24/FY25E.
We like UltraTech Cement given its unmatched scale and efficiency and improving balance sheet despite undergoing a massive capex program.
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