On
20th July 2023, one
of the major market players in the “Cement” Industry named Ultra Tech Cement,
clocked double-digit volume growth in the first quarter (Q1), which is expected
to drive the revenue higher despite lower realisation.
The
company’s revenue is seen rising up to 18% year to year (Y-O-Y), while the
estimates are mixed on the profit funds. While some market analysts are
expecting a profit growth of rise to 18% YoY, others see a decline of up to 7%.
Additionally, the company has already registered consolidated sales volume
progress of 20% year-on-year to 29.96 MT for the first quarter, led by strong
growth in April-May 2023. Domestic grey and white cement sales volume grew by
20% and 11% year-on-year, respectively. While capacity utilization stood at 90%
for the quarter.
EBITDA
was likely to decline during the first quarter owing to weak cement
realisations. In the preceding March quarter, net profit declined 36% to approximately
USD 200 million, while revenue from operations rose 18% to around USD 2,228
million.
Additionally,
various brokerages including ICICI Securities, Axis Securities, Kotak
Institutional Equities, Emkay, YES Securities among others expect from
Ultratech Quarter 1, for instance,
ICICI
Securities – Market
player UltraTech Cement has already reported volume growth of 20% for the
Quarter 1 Fiscal year (FY24). However, ICICI Securities expects EBITDA to decline
by 3% year-on-year and down 9% quarter-on-quarter with only partial respite
from high fuel costs.
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. Profit After Tax 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.
Additionally,
in April 2023, Ultratech Cement Limited decided to merge three whollay owned
subsidiaries with itself namely, Nathdwara Cement, Swiss Merchandise
Infrastructure and Merit Plaza. Swiss Merchandise Infrastructure and Merit
Plaza are wholly owned subsidiaries of UltraTech Nathdwara Cement and were
acquired as part of the insolvency process.