Ultratech Cement Q2FY22 Earnings Result Preview – Company to announce results on Monday- Here are 5 things to watch out for

Ultratech Cement Limited is expected to report a 17.3 per cent Year-on-Year (YoY) jump in its revenues at Rs 121,47.6 cr for the July-September quarter, on the back of healthy demand and robust volume growth, according to estimates by Yes Securities.

On the Quarter-on-Quarter (QoQ) basis, the jump is seen by 2.7 per cent. The Aditya Birla Group company will be announcing its earnings results on Monday.

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Ultratech Cement Q2FY22 Earnings Result Preview - Top 5 things to watch out for:

1. Revenue Growth – Revenue growth expected to go up 17.3 per cent YOY and 2.7 per cent QoQ according to Yes Securities. ElaraCapital estimates jump of 12 per cent YoY and decline of 2.2 per cent QoQ.

2. Net Profit – PAT or Profit After Tax is estimated at Rs 1557.20 cr, up 73.4 per cent YoY, down 8.5 per cent sequentially, Yes Securities report says.

3. EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortisation is expected at Rs 3120 cr, down 34bps YoY and 227bps QoQ.

4. Demand Scenario - Expect volumes at 22.3 MT, which is an 11 per cent YoY growth and 7 per cent QoQ riding on a healthy demand scenario.

5. Pricing Outlook - Expect pricing to get marginally moderated by 1 per cent sequentially and up by 6 per cent on YoY basis.

Meanwhile, another brokerage firm ElaraCapital expects net sales to go up by 12 per cent YoY at Rs 11,080.60 cr while a 2.2 per cent decline on the QoQ basis.

Sector Summary

Raw material cost likely to impact margins of cement companies, though price hikes would partially offset the inflating operating cost (fuel/diesel). PAN India average cement price had moderated by 2 per cent QoQ led by seasonal monsoon impact across regions. However, on a y/y basis, the average PAN India prices remains resilient by over 4.5 per cent YoY in Q2FY22E.   

Overall volume growth for the industry to be up by 20-23 per cent YoY (+4% q/q) in Q2FY22E.

Shares of Ultratech Cement ended at Rs 7428 on the NSE on Thursday, up almost 1 per cent from the Wednesday closing price. The equity markets were shut on Friday on account of Dussehra.

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