UltraTech Cement Q2 Review - Results In-Line; Price Increases To Result In Margin Expansion: Systematix
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Systematix Research Report
UltraTech Cement Ltd.’s Q2 FY22 results were largely in-line. Ebitda (up 2% YoY, down 18% QoQ) was 1.6% below our estimates.
Volumes/net sales realisation grew 6.7%/8.1% YoY, respectively. Overall cement sales volumes at 20.5 million tonne were 3% below our estimates, while net sales realisation was 2% above our estimates.
UltraTech Cement’s unit operating profit at Rs 1,270 (down 4.5% YoY,down 18% QoQ) was 4.5% below our estimates owing to higher-than-expected other expenses (Rs 772/tonne versus Rs 600 estimated) and staff costs (Rs 307/tonne versus Rs 274 estimated).
The management believes that the spike in the above cost items is transitory and should normalise over the coming quarters.
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