iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Q3FY23 Review: Ultratech Cement: Well-placed to capture growth

24 Jan 2023 , 02:00 PM

UltraTech Cement (UTCEM) posted broadly in-line performance for Q3FY23. EBITDA grew by 25% QoQ, driven by strong volume growth (up 11.4%) and higher EBITDA/t (up 12%). Volumes grew by 12.5% YoY to 24.8mn MT, in-line with estimates. Demand momentum was robust across regions and segments. Although 12% QoQ improvement in EBITDA/t to Rs866 was marginally better than estimated by analysts at IIFL Securities, they note that realization growth (+0.6% QoQ) lagged their expectation of 2-3% increase. But, better cost management (lower lead distance + operating leverage) resulted in marginal cost decline (-1.8% QoQ). Power and Fuel costs were flat QoQ, as 10% decline in pet coke prices was offset by higher coal prices.

Management commentary (cost reduction + strong volume growth) implies further improvement in Q4. Although company has cautioned against any sharp decline in fuel prices even in the medium term, analysts at IIFL Securities see low risk to their FY25 EBITDA/t estimate of Rs1,225. UTCEM is well-placed to capitalize on the likely demand upcycle in near term. They value UTCEM at 15x 2YF EV/EBITDA and have retained their Buy recommendation on the stock.

Related Tags

  • Ultratech Cement
  • Ultratech Cement Q3
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

closeIcon

Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp