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  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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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