UltraTech Cement (UltraTech), flagship company of Aditya Birla Group, is expected to report a 15-17 percent year-on-year decline in its consolidated net profit on April 29 when it declares its results for the quarter and year ended March 2022. On a sequential basis, profit is seen declining 12-15 percent.
India’s largest cement manufacturer is expected to report a 7-10 percent on-year rise in its consolidated revenues for the quarter. Sequentially, the revenues are seen spiking by 18-20 percent.
Analysts expect the company to register a profit after tax (PAT) of Rs 1,495 crore on revenues of 15,430 crore.
The growth in revenues will be aided by an increase in volumes coupled with an improvement in blended realisations. However, profit will be reined in by higher manufacturing costs because of an increase in pet coke and crude prices, though, the impact of higher costs should be partly negated by the operating leverage.
Performance in comparable quarters
UltraTech had recorded a consolidated PAT of Rs 1,775 crore during the corresponding period a year ago. It had a credit of an exceptional item of Rs 38.8 crore excluding which the PAT stood at Rs 1,736.4 crore. The consolidated revenue from operations during that period came in at Rs 14,405.6 crore.
The consolidated PAT during the previous quarter of the current financial year stood at Rs 1,708 crore. Adjusting for the credit of exceptional items amounting to Rs 76 crore, the adjusted PAT for the previous quarter was Rs 1,632 crore on revenues of Rs 12,985 crore.
Volumes are likely to remain flat year on year at 27.5 million tons (MT) but compared to the previous quarter of FY21, volumes are seen improving by around 18 percent.
What analysts see
“Expect sales volumes to decline by 1 percent YoY on a 12 percent dip in White Cement volumes and expect RMC revenue to increase by 7 percent YoY,” says Brokerage firm Motilal Oswal Financial Services.
Analysts expect blended realisations to improve between 7-10 percent on year and by 1 percent sequentially.
“We estimate blended realizations to increase 0.5 percent QoQ (+11 percent YoY) impacted by lower exit prices of Q3FY22 and back-ended price strength in Q4FY22,” says a report by Kotak Institutional Equities.
EBITDA (earnings before interest, tax, depreciation and amortisation) is expected in the range of Rs 950–1,100 per ton, a decline of approximately 15 percent on year and a low-single-digit increase from the previous quarter.
“We expect variable cost to increase by 29 percent YoY while other expenses and employee cost is expected to rise by 18 percent and 11 percent YoY respectively, basis which we expect EBITDA/t at Rs 1,066 which is an on year decline of Rs 262/ton and a marginal increase of Rs 20/ton sequentially,” says a Motilal Oswal report.
The UltraTech stock ended Rs 68.5 or 1.05 percent higher at Rs 6,616.95 on April 28 on the National Stock Exchange. The stock has gained 4 percent during the past one year as well as the past one month.Disclaimer: The views and investment tips of investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.