Ultratech Cement’s Profit Rises 28%, Revenue Misses Street Estimates
Ultratech Cement’s Q1 revenue misses estimates. Stock falls.
UltraTech Cement Ltd.’s net profit increased 28.3 percent to Rs 775 crore in the first quarter of the financial year 2016-17, compared to the same period last year. The profit surpassed the consensus of analyst estimates compiled by Bloomberg.
Total revenue rose 3.9 percent to Rs 6,182 crore from the same quarter last year, according to Ultratech’s filing on the Bombay Stock Exchange. Analysts had projected Rs 6,405 crore revenue.
The cement company’s margins on its earnings before interest, taxes, depreciation and amortisation improved to 23 percent from 19 percent in the same quarter last year.
.png?auto=format%2Ccompress)
Sales volume grew 6 percent to 12.87 million tonnes, while EBITDA per tonne came in at Rs 1,106 in the quarter ended June.
The company added that its global capacity will rise to 91.1 million tonnes once it completes the acquisition of Jaiprakash Associates Ltd.’s cement units. In February 2016, UltraTech had announced the deal to buy cement factories in six states for an enterprise value of Rs 16,500 crore.
The company expects its cement demand to grow 7 percent this year, according to its press release.