The revenue is seen growing up to 18% year-on-year, while the estimates are mixed on the profit front. While some analysts are expecting a profit growth up to 18% YoY, others see a decline up to 7%.
The company has already reported consolidated sales volume growth of 20% year-on-year to 29.96 mt for the first quarter, led by strong growth in April-May 2023 and seasonal tailwinds.
Domestic grey and white cement sales volume grew 20% and 11% year-on-year, respectively, while capacity utilization stood at 90% for the quarter.
EBITDA is likely to decline during the first quarter owing to weak cement realisations.
In the preceding March quarter, net profit fell 36% to Rs 1,666 crore, while revenue from operations rose 18% to Rs 18,562 crore.
Here’s what brokerages expect from Ultratech Q1:
ICICI Securities
UltraTech Cement has already reported volume growth of 20% for Q1FY24. However, we expect EBITDA to dip 3% year-on-year and down 9% quarter-on-quarter with only partial respite from high fuel cost.
Axis Securities
The brokerage expects revenue growth to be higher due to higher, but gross margins to be lower due to easing in fuel costs.
“EBITDA margin to be marginally lower YoY but higher QoQ owing to higher volume and easing in cost pressure. PAT to be higher owing to higher revenue and lower cost YoY. EBITDA/tonne to be slightly lower YoY but higher QoQ on the back of lower cost and higher volume,” it said.
Kotak Institutional Equities
We estimate blended realizations to stay flat qoq, led by muted price hikes during the quarter. We estimate costs/ton to decline marginally on a sequential basis, largely led by lower power-fuel cost, mainly offset by lower operating leverage on a sequential basis.
We estimate cement EBITDA/ton to improve marginally to Rs 1,065/ton (-14.6% YoY, +0.6% qoq) on account of net lower costs.
Emkay
Volumes increased 20% YoY, while cement realization is estimated to decline 4% YoY, albeit having stayed broadly flat QoQ.
Total cost/ton should decline 2% YoY. Consequently, blended EBITDA/ton is expected to decline 11% YoY to Rs 1,100.
YES Securities
Double-digit volume growth year-on-year to drive revenue growth by 15% despite NSR moderation. EBITDA/te to reach +1100/te with easing of power and fuel cost in this quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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