UltraTech Profit Likely To Grow Over 50%
UltraTech Cement, the largest cement manufacturer in India, is expected to report more than 50 percent year-on-year growth in March quarter profit driven by revenue and operating performance. Revenue from operations in Q4 FY21 is likely to grow in the range of 25-30 percent, with volume growth likely at over 20 percent compared to the year-ago quarter. The blended realisations could grow around 2 percent YoY but decline around a percent on a sequential basis. "We estimate the volume of 25.7 million tonnes (up 25 percent YoY & up 12 percent QoQ) in Q4 FY21 factoring the seasonal tailwinds and recovery in non-trade demand. We expect blended realizations to decline 1 percent QoQ (up 2 percent YoY) with price cuts during the start of the quarter being offset by price hikes in March 2021 and lower price discounts in the non-trade segment," said Kotak Institutional Equities which sees 79 percent YoY growth in profit and 27 percent rise in revenue. According to Prabhudas Lilladher, blended realisations are expected to increase by 2.3 percent YoY (down 0.5 percent QoQ). At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) could grow more than 40 percent YoY with triple digit growth in margin YoY, and EBITDA per tonne is likely to see a 10-16 percent YoY growth. "Due to better realisations, EBITDA per tonne is expected to improve by 10 percent YoY, said Prabhudas Lilladher.
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