Prabhudas Lilladher: UltraTech Cement Capturing Attractive Growth Opportunities
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Prabhudas Lilladher Report
Ultratech Cement Ltd. approved new capacity expansion of 12.8 million tonnes per annum.
It would incur total capital outlay of Rs 54.8 billion with attractive capex cost of $58/tonne, significantly below standard cost of $75-80/tonne.
This expansion is over and above the ongoing expansion of 6.7 million tonne. Nearly 52% of its new capacity would come in East region, which is already facing sharp surge in supplies.
Intense competition pushed margins to new lows of Rs 850-900/tonne in the region. However, lower margins were compensated by strong volume growth.
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