UltraTech Cement Q1 Preview: Profits expected to be muted, Margins to contract

Ultratech Cement Limited, India's largest cement manufacturer by market capitalisation, is expected to report a 2.9 percent increase YoY (year-on-year) in its Net Profits for Q1FY24.

According to an average of the estimates from Motilal Oswal Financial Services Limited, Kotak Institutional Equities, ICICI Securities, and HDFC Securities, the company is expected to report a Net Profit of Rs 1,630 crore against Rs 1,584 crore reported in Q1FY23. However, sequentially, the Net Profit is expected to decrease by 2.2 percent QoQ (quarter-on-quarter) from Rs 1,670 crore reported in Q4FY23.

Based on the mean consensus of the above-mentioned brokerage firms, the company is expected to report a Revenue of Rs 17,475 crore in Q1FY24, which would be a 15.2 percent increase YoY from Rs 15,164 crore reported in Q1FY23. However, the revenues are expected to decline by 6.4 percent from Rs 18,662 crore reported in Q4FY23.

The mean EBITDA (earnings-before-interest-taxes-depreciation and amortisation) margin in Q1FY24 is expected to be 17.9 percent, representing a 252 basis points decrease YoY from 20 percent in Q1FY23. Sequentially, the margins are expected to increase by 10 basis points from 18 percent reported in Q4FY23, according to the brokerage firms.