Ultratech Cement Q3 Results Preview: PAT may jump by 73.1%; revenue is likely to rise by 7.9%

Ultratech Cement Preview Q3 FY23 24: Zee Business research estimates Ultratech Cement's consolidated profit after tax (PAT) to jump by 73.1 per cent as India's largest cement maker by market capitalisation is set to announce its December quarter results on Friday. 

Analysts estimate the cement firm to report a PAT of Rs 1840 crore in the quarter under review, a jump from Rs 1063 crore Year-on-Year (YoY).

The research predicts that the company may report a 7.9 per cent jump in its consolidated to Rs 16748.70 crore in Q3 FY 2324 from Rs 15521 crore the company reported in the third quarter of the previous financial year.

The research team says that Ultratech's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA), which is a metric to evaluate a company's operating performance, may rise to Rs 3304 crore, a sharp 41.4 per cent jump from Rs 2336 crore the firm clocked in the December quarter of FY22-23.

The cement maker's margin for the December quarter under review may also rise to 19.7 per cent, as per research estimates.

It will be a significant rise from the firm's margin of 15.1 per cent in the same quarter last year.

Among other important indicators that show the health of a company, research estimate the volume to grow by six per cent YoY.

It also estimates the blended realisation to grow by 3 per cent YoY as well as Quarter-on-Quarter (QoQ).

As per analysts, income from RMC is estimated to grow by 26 per cent YoY, while income from white cement is expected to grow by 18 per cent YoY.

The analysts say margin expansion is possible due to a fall of 10 per cent in variable cost per tonne YoY and increased realisation.

In Q3, the company also announced to take over the cement business of Kesoram Industries.

Ultratech Cement share price

Ahead of the Q3 result day, the stock of Ultratech Cement closed up by 0.43 per cent, or Rs 41.95, at Rs 9892.70.