UltraTech Cement Q2 Review - Strong Growth Visibility; Higher Costs A Near-Term Concern: Motilal Oswal
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Motilal Oswal Report
UltraTech Cement Ltd. reported an 8%/7% YoY growth in volume/blended realization.
Ebitda margin declined by 339 basis points YoY to 22.6% due to energy cost inflation, which was further accentuated by higher maintenance and employee costs.
UltraTech Cement's Ebitda remained largely flat YoY at Rs 27.1 billion (down 18% QoQ).
Market share gains should continue, aided by the ongoing 20 million tonne per annum expansion program (1.2 mtpa commissioned in October 2021), which should drive a 10% volume compound annual growth rate over FY21-24E.
We largely maintain our FY22-24E earnings per share estimates and expect 19% earnings per share CAGR over FY21-24E.
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