Shares of UltraTech Cement Ltd. soared more than 5% on Thursday after the company posted robust third-quarter earnings that exceeded analysts' expectations.
For the quarter ending Dec. 31, 2024, UltraTech posted a consolidated net profit of Rs 1,470 crore, a decrease of 17% compared to the same period last year, but still ahead of Bloomberg's consensus estimate of Rs 1,324 crore.
The company's consolidated revenue rose by 2.7% year-on-year to Rs 17,193.3 crore, slightly surpassing the analyst estimate of Rs 17,130 crore.
The earnings before interest, taxes, depreciation and amortisation, however, fell by 11% YoY to Rs 2,887.09 crore. The Ebitda margins contracted to 16.8% compared to 19.4% in the year-ago period, yet still above the Bloomberg estimate of 16.3%.
Despite the dip in profits and Ebitda, the results were considered strong relative to market expectations, contributing to the rise in UltraTech Cement's share price.
The scrip rose as much as 5.47% to Rs 11,278 apiece on the National Stock Exchange. However, it pared some of the gains to trade 4.42% higher at Rs 11,166 apiece, as of 02:11 p.m. This compares to a 0.38% advance in the NSE Nifty 50 Index.
Over the past 12 months, the company's stock has risen by 14.5%. The the total traded volume so far in the day stood at 3.3 times its 30-day average. The relative strength index was at 54.
Out of 42 analysts tracking the company, 33 maintain a 'buy' rating, six recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average of 12-month consensus price target implies an upside of 11.8%.
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