UltraTech Cement Q4 Review - Healthy Asset Utilisation Leads To Better Margins: ICICI Direct
Gravel and sand are loaded onto a conveyor belt at the concrete plant. (Photographer: Jack Atley/Bloomberg)

UltraTech Cement Q4 Review - Healthy Asset Utilisation Leads To Better Margins: ICICI Direct

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BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

In Q4 FY21, UltraTech Cement Ltd. operated with plant utilisation of over 93% backed by strong demand across regions with east operating at almost 100% capacity utilisation.

Rest all other regions barring south operated at over 90% leading to average capacity utilisation of 93% for the company in Q4.

This led to sales volume growth of 29.6% YoY to 26.6 metric tonne. With firm realisations (up 4% YoY, 1.3% QoQ), revenues grew 34.8% YoY to Rs 13,966 crore (our estimate: Rs 12,917 crore).

Better fixed cost absorption kept cost of production under check that increased 1% QoQ only while remaining flat YoY.

As a result, Ebitda/tonne for the quarter was higher at Rs 1,321/tonne (versus our estimate of Rs 1,218/tonne).

Click on the attachment to read the full report:

ICICI Direct UltraTech Q4FY21 Result Update.pdf

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