UltraTech Cement Q3 Results Review — Volume Recovery Powers Growth, Says Systematix; Maintains 'Buy'

UltraTech Cement continues to demonstrate robust operational performance and strategic advancements..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.UltraTech Cement Ltd. reported a strong revenue of Rs 172 billion; largely in line with our expectations, while Ebitda/PAT beat our estimates marginally. Consolidated revenue was up by 2.7% YoY (+10.0% QoQ) to Rs 171.9 billion in line with our estimate of Rs 170.8 billion owing to robust volume growth and stable realizations. Volume grew 11.2% YoY (+9.1% QoQ) to 30.4 million tonne (in line with our est. of 30.1 mt). Blended Realization/tonne dipped 7.6% YoY and improved 0.8% QoQ to Rs 5,661 in line with our estimates. Ebitda was down by 11.3% YoY but improved 43.1% QoQ to Rs 28.9 billion; versus our estimate of Rs 27.5 billion. Ebitda/tonne was down 20.2% YoY (+31.2% QoQ) to Rs 951. Power and Fuel cost/tonne declined 14.3% YoY while Freight and other cost/tonne fell 5.3% and 5.8% YoY aiding some Ebitda/tonne recovery. Adjusted PAT was down 16.7% YoY (+78.1% QoQ) to Rs 14.8 billion, versus our estimate of Rs 14.1 billion. PAT margin contracted to 8.6%. Lead distance reduced to 377 kms in Q3 FY25 from 397 kms in Q3 FY24. We forecast a strong 16%/18%/23% CAGR in revenue/Ebitda/PAT over FY24-26E. We maintain Buy on the stock with a target price of Rs 12,660 based on 20 times FY26E EV/Ebitda. We expect acquisition of Kesoram and India Cement to substantially augment growth..Click on the attachment to read the full report:.UltraTech Cement, BPCL, Dr. Reddys, Cyient, Ujjivan Small Finance Bank Q3 Results Review — HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

UltraTech Cement Q3 Results Review — Volume Recovery Powers Growth, Says Systematix; Maintains 'Buy'

The brokerage expects acquisition of Kesoram and India Cement to substantially augment growth of UltraTech Cement.

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