ET Intelligence Group: Ultra-Tech Cement, which commands valuations similar to those at consumer companies, beat Street estimates of operational performance in the March quarter, pointing to further gains at the leading manufacturer that acquired stressed assets to plug supply gaps in India’s highly regional cement market.
Against Bloomberg’s earnings per share (EPS) estimates of Rs 29.7, UltraTechNSE 3.42 % returned Rs 37.7 in EPS in the three months under review.
Sales volumes climbed 16 per cent and net revenues rose 17 per cent to Rs 10,739 crore. UltraTech had net debt repayment of Rs 2,205 crore, which reduced its interest costs by 24 per cent. Furthermore, benign raw material prices helped net profit more than double to Rs 1,013 crore in the March quarter.
As the leader in the world’s second-biggest market for the primary building material, Ultra-Tech has significant advantages. First, the demand cycle has improved and prices have revived. This situation is likely to sustain in the coming quarters.
The demand-supply equation is also favourable for the industry. In FY20, there will be incremental capacity addition of 12MT. By contrast, the industry is expected to generate cement demand of 38 MT. Besides infrastructure and low-cost housing, ..
successfully integrated with the company. UltraTech Nathdwara is operating at an average capacity utilization of 62 per cent, which the company plans to take to more than 80 per cent in the coming quarters.
Also, JP’s assets are operating at 82 per cent capacity utilization. On the whole, UltraTech is operating at 90 per cent of capacity. So, cash flows in FY20 are likely to be robust. This fiscal year, the company’s focus is to deleverage its balance sheet and bring its net debt to EBI ..
Against Bloomberg’s earnings per share (EPS) estimates of Rs 29.7, UltraTechNSE 3.42 % returned Rs 37.7 in EPS in the three months under review.
Sales volumes climbed 16 per cent and net revenues rose 17 per cent to Rs 10,739 crore. UltraTech had net debt repayment of Rs 2,205 crore, which reduced its interest costs by 24 per cent. Furthermore, benign raw material prices helped net profit more than double to Rs 1,013 crore in the March quarter.
As the leader in the world’s second-biggest market for the primary building material, Ultra-Tech has significant advantages. First, the demand cycle has improved and prices have revived. This situation is likely to sustain in the coming quarters.
The demand-supply equation is also favourable for the industry. In FY20, there will be incremental capacity addition of 12MT. By contrast, the industry is expected to generate cement demand of 38 MT. Besides infrastructure and low-cost housing, ..
successfully integrated with the company. UltraTech Nathdwara is operating at an average capacity utilization of 62 per cent, which the company plans to take to more than 80 per cent in the coming quarters.
Also, JP’s assets are operating at 82 per cent capacity utilization. On the whole, UltraTech is operating at 90 per cent of capacity. So, cash flows in FY20 are likely to be robust. This fiscal year, the company’s focus is to deleverage its balance sheet and bring its net debt to EBI ..
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