UltraTech Cement Q3 Results Review - Profitability Inline With Estimate; Outlook Positive: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.UltraTech Cement Ltd.’s Q3 FY24 operating performance was largely in line with our estimates. Ebitda stood at Rs 32.5 billion (estimate: Rs 33.8 billion) and Ebitda/tonne came in at Rs 1,191 (estimate: Rs 1,236). Profit after tax at Rs 17.8 billion was 7% below our estimate on account of lower-than-estimated other income and higher interest costs. The management remains optimistic about demand growth prospects and expects capacity utilisation to improve to ~80-85% in Q4 (77% in Q3).Demand has recovered in most of the markets, except the North region, since mid-December-23. The cost has been falling and the average fuel cost should further drop by 7-8% over the next six months. Capex is pegged at Rs 90 billion for FY24/FY25 each given the accelerated expansion plans. We largely maintain our estimates and reiterate 'Buy' rating on the stock, given its: leadership position, robust expansion plans without leveraging the balance sheet, andstructural cost improvement measures. We value UltraTech Cement at 18 times FY26E enterprise value/Ebitda to arrive at our target price of Rs 12,000..Click on the attachment to read the full report:.UltraTech Cement Q3 Results: Profit Rises 67%, In Line With Estimates .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

UltraTech Cement Q3 Results Review - Profitability Inline With Estimate; Outlook Positive: Motilal Oswal

Variable cost is expected to decline further in H1 CY24

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UltraTech Cement Q3 Results Review - Profitability Inline With Estimate; Outlook Positive: Motilal Oswal

Variable cost is expected to decline further in H1 CY24

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