UltraTech Cement Q4 Review - Enough Levers For Positive Margin Surprise: Prabhudas Lilladher
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Prabhudas Lilladher Report
UltraTech Cement Ltd. reported strong set of Q4 FY21 earnings with 9% beat on our/consensus Ebitda estimates.
The beat was largely led by better realisations. Ebitda/tonne increased 17% YoY (up 2% QoQ) to Rs 1,356 (our estimate: Rs 1,242).
The company successfully integrated acquired operations of Century Cement (14.6 million tonne), JP Associates (21.2 million tonne) and Binani Cement (6.3 million tonne) within guided timeline and profitability.
Backed by sound balance sheet (net debt/Ebitda at 0.6 times) and steady cash flows, the company embarks on next round of growth with 19.5 million tonne of new capacities along with sizeable investment in high payback and environment friendly renewable power to increase its share to 34% by FY24 from current 13% of overall power requirement.
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