UltraTech Cement Q3 profit may surge up to 70%, margin expansion likely: Analysts

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UltraTech Cement Q3 profit may surge up to 70%, margin expansion likely: Analysts


NEW DELHI: UltraTech Cement is expected to report an up to 70 per cent year-on-year (YoY) surge in net profit for the December quarter on a 6-12 per cent rise in sales. Volumes are seen growing in the range of 8-9 per cent compared with the corresponding period a year ago. Ebitda margin is also seen expanding on a YoY basis, but falling on a sequential basis.

Motilal Oswal Securities expects the cement maker to clock a 72.3 per cent jump in adjusted profit to Rs 1,390 crore for the December quarter, from Rs 806.90 crore in the year-ago period. Sales are seen rising 12.6 per cent YoY to Rs 11,661.50 crore, from Rs 10,353.80 crore.

The sales volume is seen rising 9.4 per cent to 22.86 MT while blended realisations are seen rising 3 per cent YoY to Rs 5,101 from Rs 4,954.

In the third quarter of the current financial year, the cement industry demand remained on a recovery path, registering growth of 6-7 per cent YoY, as against 5 per cent in the July-September period. Pricing softened 1.5-2 per cent sequentially, largely reflecting the seasonal trend. Prices were still higher by 4-5 per cent on a year-on-year basis.

Centrum Broking pegs the cement maker’s Q3 profit at Rs 1,031.70 crore, up 32.90 per cent. It sees the company’s sales rising 6.2 per cent to Rs 10,600 crore.

HDFC Institutional Research sees UltraTech’s consolidated profit growing 49.1 per cent to Rs 1,196 crore. It sees its consolidated revenues rising 12.1 per cent to Rs 11,608 crore. The Ebitda margin is seen expanding 270 basis points to 23 per cent. On a sequential basis, the Ebitda margin is seen falling 300 basis points.





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