UltraTech Cement Q4 Results Review - Resilient Performance Amid Pricing Pressure: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.UltraTech Cement Ltd.’s Q4 FY24 operating performance was above our estimates (9% beat on Ebitda), primarily fueled by lower-than-estimated opex/tonne. Ebitda stood at Rs 41.1 billion (estimate: Rs 37.6 billion), and Ebitda/tonne came in at Rs 1,173 (estimate: Rs 1,069). Adjusted profit after tax stood at Rs 23.1 billion (estimate: Rs 20.6 billion). Management expects cement demand to grow ~7-9% YoY in FY25 after a 9.5% growth in FY24. It expects fuel consumption costs to drop to $130/tonne over the next three quarters from $150/tonne currently. It anticipates opex to continue declining, and savings should be around Rs 200-300/tonne over the next three years driven by higher blending ratio, higher usage of waste heat recovery system and renewable energy, alternate fuel, and a reduction in lead distance..We largely maintain our estimates and reiterate our Buy rating on the stock, given its:leadership position in the industry,robust expansion plans without leveraging the balance sheet, and structural cost improvement measures. We value UltraTech Cement at 18 times FY26E enterprise value/Ebitda to arrive at our target price of Rs 11,500..Click on the attachment to read the full report:.UltraTech Cement Q4 Results Review - Profitability To Improve; Expansion To Support Growth: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

UltraTech Cement Q4 Results Review - Resilient Performance Amid Pricing Pressure: Motilal Oswal

Cost savings of Rs 200-300/tonne likely over the next three years

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UltraTech Cement Q4 Results Review - Resilient Performance Amid Pricing Pressure: Motilal Oswal

Cost savings of Rs 200-300/tonne likely over the next three years

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