- 30 Apr 2024
- ICICI Securities
Operational performance beats expectations
ULTRACEMCO - 9789 Change: -100.95 (-1.02 %)News: Revenue increased by 9.4% YoY (+21.9% QoQ) to Rs 20418 crores, mainly led by sales volume growth of 10.8% YoY (+28.4% QoQ). Net realisation was down 1.3% YoY (-5% QoQ) at Rs 5820/ton. EBITDA increased by 23.8% YoY (+26.4% QoQ) to Rs 4113 crores. EBITDA/ton stood at Rs 1172/ton (up 11.7% YoY, flattish QoQ) despite lower realisations. Improvement in EBITDA/ton was primarily led by lower power & fuel cost and positive operating leverage. PAT increased by 43.3% YoY (+37.8% QoQ) to Rs 2393.7 crores. For FY24, revenue grew by 12.1% to Rs 70907 crores (led by 12.7% volume growth) with EBITDA/ton stands at Rs 1089/ton (vs 1005/ton in FY23).
Views: Overall operational performance was above expectations, mainly on account of better-than-expected volume growth and lower costs. Going ahead, we believe that company will continue to grow its volumes, better than industry, led by aggressive capacity additions and gaining market share across regions. Company targets to reach domestic cement capacity of 157 mtpa by FY25E and 183.5 mtpa by FY27E (from 147.3 mtpa at present). Margins are expected to improve further led by continuous cost efficiency measures. Company is guiding for further reduction of Rs 200-300/ton in total cost over the next 3 years (from current levels), led by cost measures like increasing share of green power and non-fossil fuels, optimising freight cost and operating leverage advantage.
Impact: Positive