- 02 May 2022
- ICICIdirect Research
UltraTech surprises positively on margin front in Q4FY22ULTRACEMCO - 7851 Change: 7.85 (0.10 %)
News: Ultratech cement’s net revenues for Q4FY22 increased 8.6% YoY to Rs15168 crore. EBITDA declined 16.2% YoY to Rs2943 crore. However, margins (19.4%, down 575bps YoY, up 159bps) were better than street estimates. With lower income and tax adjustments, PAT was higher by 38% YoY to Rs2454 crore.
Views: In the current quarter, the impact of higher fuel prices were not visible as the company had sufficient low cost fuel inventories. Further, benefit of excise cut on fuel and stricter control over other fixed overheads helped the company improve margins sequentially. The current cement prices are hovering Rs30/bag higher than the exit rate of Q4FY22. If it sustains then it should help the company to mitigate the stiff cost pressure that would start getting visible in nos from Q1FY23 onwards.