Motilal Oswal: UltraTech Cement Continues To Deliver And De-Lever  
Construction workers prepare ready-mix concrete at an overpass construction site on India’s National Highway 8, in Gurgaon, India (Photographer: Sanjit Das/Bloomberg News)

Motilal Oswal: UltraTech Cement Continues To Deliver And De-Lever  

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Motilal Oswal Report

UltraTech Cement Ltd.’s result highlights the execution of its planned cost rationalization and de-leveraging roadmap.

Despite negative operating leverage (volumes down 32% YoY), the company reported the highest ever Ebitda/tonne of Rs 1,416, led by cost reduction across heads of expenditure.

Net debt also declined by Rs 22 billion (13%) QoQ to Rs 147 billion (1.7 times Ebitda).

We raise our consolidated profit after tax estimate by 23%/11% for FY21/FY22 after factoring lower operating costs as well as lower finance cost (on account of faster de-leveraging).

Besides strong free cash flow, non-core asset sales should further aid de-leveraging.

Click on the attachment to read the full report:

Motilal Oswal UltraTech Cement Q1FY21 Result Update.pdf


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