UltraTech Cement Q4 Review - Second Covid-19 Wave A Blip; Long-Term Thesis Intact: ICICI Securities
A shovel sits in a tub of freshly mixed cement at a residential construction site. (Photographer: Angel Navarrete/Bloomberg)

UltraTech Cement Q4 Review - Second Covid-19 Wave A Blip; Long-Term Thesis Intact: ICICI Securities

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 Securities Report

Key takeaways from UltraTech Cement Ltd.’s management concall include:

1. Company to remain focused on organic as well as inorganic expansion in domestic market, given operating cash flow generation of more than Rs 100 billion per annum;

2. expect strong demand growth in the medium-term; recent slowdown owing to second Covid-19 wave likely to be temporary;

3. expansion of 19.5 million tonne capacity on track to get commissioned by March 2023-end;

4. royalty cost savings of Rs 2 billion per annum owing to recent Mumbai Metropolitan Region Development Authority amendments; fuel costs escalations to stabilise by Q3 FY22; and

5. expects return ratios to improve by at least 300 basis points in the medium-term.

Click on the attachment to read the full report:

ICICI Securities UltraTech Cement Q4FY21 Concall Update.pdf

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