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

In recently released sales volume figures for the April to June quarter, Ultratech reported a total consolidated sales volume of 29.96 million tonne, a 20 percent increase YoY from 25.04 million tonne reported in Q1FY23.

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.

Also read UltraTech Cement hits record high as decent sales volume growth reflects strong demand

In the recently released sales volume figures for the April to June quarter, Ultratech reported a total consolidated sales volume of 29.96 million tonnes, showing a 20 percent increase YoY from 25.04 million tonnes reported in Q1FY23.

UltraTech Cement Limited, a prominent cement and cement-related products manufacturer, is a subsidiary of the Aditya Birla Group. The company operates an extensive network of plants and distribution centres, serving both domestic and international markets in the construction industry. Their product range includes ordinary Portland cement, Portland pozzolana cement, and other variants."

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