India's largest cement player, UltraTech Cement Ltd., is expected to see a 12% and a 77% sequential rise in its net profits in the fourth quarter of fiscal 2025, as per consensus analyst estimates.
An annual rise in the company's volume due to a better demand environment in the quarter, as well as the quarter-on-quarter uptick of pan-India cement prices, is set to help the company's earnings in the fourth quarter.
UltraTech Q4 FY25 Expected Results (Consolidated, YoY)
Revenue may rise 12.5% at Rs 22,967.44 crore versus Rs 20418.94 crore
Ebitda may rise 12.2% at Rs 4615.92 crore versus Rs 4113.92 crore
Margins expected to be flat at 20.1%
Net profit expected to rise 12.4% at Rs 2538.39 crore versus Rs 2258.12 crore
Double Digit Volume Growth Expected
Kotak expects UltraTech's volumes in Q4 FY25 to rise 15% year on year and 36% quarter on quarter to 39.1 million tonnes. The broking expects this growth to be led by inorganic capacity additions as well as seasonal tailwinds during the quarter.
Systematix and Nuvama expect volume growth to be at 12.7% and 9%, respectively.
Ebitda Per Tonne To Rise Sequentially
While UltraTech's margins are expected to be flat on an annual basis at around 21%, one could see expansion on a sequential basis.
Kotak expects the company's costs per tonne to fall almost 3% on a sequential basis due to operating leverage and muted costs. The brokerage pegs the company's Ebitda per tonne to be flat on an annual basis but increase 22% quarter on quarter to Rs 1,180. This unit Ebitda growth would be on the back of price hikes and muted costs during the quarter.
Similarly, UltraTech meets Systematix's list of five cement companies that will see an EBITDA per tonne of over Rs 1,100 due to price discipline, established brand reputation and superior cost initiatives.
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