ultratech cement share price: UltraTech Cement shares up ahead of Q2 results

NEW DELHI: Shares of UltraTech Cement traded higher in early trade on Wednesday ahead of its financial results for the September quarter later in the day.

The scrip was up 0.61 per cent at Rs 4,575 at around 9.25 am (IST), while the benchmark BSE Sensex traded 0.82 per cent higher at 40,869.

There are expectations that the cement major is likely to post up to 100 per cent growth in profit for the September quarter.

As per Motilal Oswal Securities, UltraTech may report a 104 per cent rise in profit at Rs 1,181.40 crore. This would be a sequential growth of 30.4 per cent. Sales are expected to rise a mere 3.5 per cent year-on-year to Rs 9,956.20 crore.

It sees volumes for Ultratech to rise 3.9 per cent YoY to 19.4 million tonne, realisations falling Rs 18 per cent to Rs 5,129 per tonne while Ebitda per tonne rising Rs 287 to Rs 1,314.

“Sales volume should rise by 6 per cent YoY. The blended realisation is likely to remain flat YoY. Grey cement realisation is expected to improve 0.8 per cent YoY. Ready-mix concrete (RMC) revenue is expected to decline by 25 per cent YoY. We expect 10 per cent YoY growth in white cement revenue,” Emkay Global said.

Sharekhan sees UltraTech’s profit at Rs 1,037 crore, up 62.2 per cent YoY.

“Cement volumes are expected to grow 7 per cent YoY at 19 million tonnes. Due to lower costs, Ebitda per tonne is expected to improve by 16 per cent to Rs150 YoY to Rs 1,090,” Prabhudas Lilladher said, while expecting 55 per cent rise in profit at Rs 991 crore.

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