Ultratech Cement, an Aditya Birla Group company, is expected to register 29 per cent fall in net profit in the December quarter even while the topline may rise marginally, largely due to intense competition.

Revenue from operations in the third quarter will increase marginally by just one per cent year-on-year, according to an average estimate of four leading brokerage houses.

EBITDA for the quarter is estimated to decline 14 per cent y-on-y and operating margins may contract 3.1 percentage points to 16 per cent.

Ultratech, which has increased capacity substantially in the last few months, has been facing pricing pressure from peer groups despite strong market presence.

Kotak Securities has factored in volumes of 28 million tonnes in the quarter and estimates EBITDA/tonne to increase sequentially to Rs 958 per tonne, led by a combination of price hikes and lower costs during the quarter.

Nuvama Research expects volumes to rise 6 per cent y-o-y and EBITDA per tonne may fall to ₹926 as against ₹1,191 in the same quarter of the previous year.

Motilal Oswal Securities anticipates Sales volume to increase 10 per cent y-o-y and blended realisation is likely to decline 8 per cent y-on-y. RMC revenue is expected to increase 10 per cent y-on-y, whereas white cement revenue is expected to increase 1 er cent YoY.

It expects EBITDA at ₹925 per tonne against ₹1,191 per tonne logged in the same period last year. Variable cost per tonne is estimated to decline 5 per cent y-o-y.

YES Securities see a volume to increase 11 per cent y-o-y . EBITDA per tonne will increase to ₹855 on improved cost efficiency.

Published on January 23, 2025