ICICI Securities: UltraTech Cement - Strong Overall Execution; Ripe For Rerating
A bricklayer spreads cement as he builds a wall for a new home (Photographer Simon Dawson/Bloomberg)

ICICI Securities: UltraTech Cement - Strong Overall Execution; Ripe For Rerating

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

UltraTech Cement Ltd.’s Q2 FY21 consolidated Ebitda at Rs 27 billion (up 41% YoY) with Ebitda/tonne of Rs 1,343/tonne was significantly higher than our/consensus estimates.

Execution was robust across all parameters – volumes grew strong at 7.3% YoY, costs/tonne fell sharply by 7.4% YoY, grey cement realisation rose 2.6% YoY, Ebitda/tonne increased 31% YoY and net debt declined by Rs 25 billion QoQ.

Management suggested demand recovery witnessed during September 2020 has further accelerated in October 2020 with H2 FY21 growth likely to broadly offset approximately 30% YoY drop seen during Q1 FY21.

Click on the attachment to read the full report:

ICICI Securities UltraTech Cement Q2FY21 Results Update.pdf

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