ICICI Securities: UltraTech Cement - Reaping Benefits Of Scale, Diversified Market Mix 
An UltraTech Cement plant (image: Company website)

ICICI Securities: UltraTech Cement - Reaping Benefits Of Scale, Diversified Market Mix 

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ICICI Securities Report

UltraTech Cement Ltd. is likely to be the key beneficiary of expected demand recovery post monsoon, given its low utilisation versus larger peers especially in North / Central regions and expected demand improvement in South / West regions from H2 FY21E.

Acquired assets of Binani Cement Ltd. and Century Textiles and Industries Ltd.’s Cement division may see gradual ramp-up after operating at 60-65% utilisation in FY20.

The Company’s strong profitability would further increase with 10% fixed costs reduction (Rs 5 billion per annum or Rs 60/tonne), improving profitability of Century’s assets, better cost efficiencies and operating leverage.

With better profitability and minimal organic capex plan, UltraTech Cement is likely to turn debt free by FY23E.

Click on the attachment to read the full report:

ICICI Securities UltraTech Cement Company Update.pdf


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