UltraTech Cement Q4 Review – Operating Leverage Increases Margin : HDFC Securities

BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s leading brokers, asset managers and research agencies. These reports offer BloombergQuint subscribers the opportunity to broaden their understanding of companies, sectors and the economy.

HDFC Securities Institutional Equities

We continue to appreciate UltraTech Cement Ltd. for its good margin outlook and balance sheet management.

The Company’s Q4 FY22 Consolidated EBITDA/Adjusted After-Tax Earnings fell 17/19% YoY (despite 10% revenue growth) due to weak demand ( through mid-February), which reduced cost pass-through amid rising energy costs.

While EBITDA per unit recovered 6% QoQ (on operating leverage gains), energy inflation pushed it down 17% YoY to Rs 1,110/million ton.

UltraTech Cement expects to maintain this margin in the first quarter of FY23 due to its low cost fuel inventory and good cost pass-through.

Click on the attachment to read the full report:


This report is written by an external party. BloombergQuint does not guarantee the accuracy of its content and is not responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert based on your individual needs. The views expressed in the report are those of the authoring entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify or distribute content without permission from the original owner.

Comments are closed.