UltraTech Cement Ltd. share price target

The fall in realizations were mitigated by fall in expense per tonne: The company's realizations came down during the quarter, which was mitigated by significant fall in expenses for the company, e.g. raw materials...

Century cement's EBITDA/t >Rs900/t. Cost fell by Rs105/t QoQ UTCEM posted strong set of Q1FY21 earnings on the back of lower fixed costs. EBITDA fell 30% YoY at Rs19.6bn, above our/consensus estimates by 22%/18%. EBITDA/t rose 6% YoY at Rs1,400 (PLe:Rs1,170) on the back of 3% YoY reduction in cost and 2.5% increase in realisations. Cement demand positively surprised us as well as the street with decline of...

of taxes) declined 33% year-on-year (YoY) to Rs 7533 crore in in the first quarter of the financial year 2020-21 (Fy21). EBITDA fell 24% to Rs 2353 crore in Q1 June 2020 from Rs 3084 crore in Q1 June 2019. Profit before tax in Q1 FY21 stood at Rs 1314 crore, down by 31% from Rs 1893...

Volumes to bottom out in FY21E; gain traction from FY22E FY21 is expected to be subdued for the cement industry due to a significant loss of business with Q1 being a strong quarter. On the one hand, rural and semi-urban demand has been supportive since lifting of the lockdown while, on the other, construction and infrastructure activities are expected to lose steam in coming quarters unless labour shortage and liquidity conditions improve. Rural demand in FY21E could be robust on the back of expectations of normal monsoon and pick-up in individual housing building...

28 July 2020 UltraTech Cement (UTCEM)s result highlights the execution of its planned cost rationalization and de-leveraging roadmap. Despite negative operating leverage (volumes down 32% YoY), the company reported the highest ever EBITDA/t of INR1,416, led by cost reduction across heads of expenditure. Net debt also declined by INR22b (13%) QoQ to INR147b (1.7x EBITDA). We raise our consolidated PAT estimate by 23%/11% for FY21/FY22 after factoring lower operating costs as well as lower finance cost (on account of faster de-leveraging). Besides strong FCF, non-core asset sales should further aid de-leveraging. Reiterate FCF generation stood at INR22.0b, achieved through a working capital release of INR7.9b. However, management does not foresee further reduction in working capital in FY21. Cement prices have declined 45% MoM in July due to seasonal weakness. Century assets recorded EBITDA/t of >INR900/t, with cost reduction of INR105/t QoQ and utilization at >70% in May and June.

UltraTech Cement Ltd. is the largest cement manufacturer in India, and is involved in production of grey cement, white cement, and Ready Mix Concrete (RMC). It has 22 operational integrated plants, 23 grinding units,...

UltraTech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India. It is also one of the leading cement producers globally. The company has a consolidated capacity of 117.35 Million (including Bara) Tonnes Per Annum (MTPA) of grey cement. UltraTech Cement has 23 integrated plants, 1 clinkerisation plant, 27 grinding units and 7 bulk terminals, post the Century merger. Its operations span across India, UAE,...

down in line with the government's directives. The consolidated sales volume (including overseas) declined 15.7% to 21.44 million tonnes (mt), while realization increased by 3% to Rs 5,012 per tonne....