Business : UltraTech Cement is expected to report hefty profits in the quarter-ended September 2020 on October 21 driven by strong operating performance and higher other income, though volumes and revenue growth may be in single digit YoY. “Sales volume should rise 6 percent YoY. Blended realization is likely to remain flat YoY (down 1.3 percent QoQ). Grey cement realization is expected to improve 0.8 percent YoY, (down 4.8 percent QoQ). RMC revenue is expected to decline 25 percent YoY. We expect 10 percent YoY growth in white cement revenue,” said KR Choksey which expects 5.8 percent YoY rise in revenue and 98 percent increase in profit for the quarter.
According to the brokerage house, operating expenses per tonne is expected to decline 4.6 percent YoY on lower other expense and energy costs. Hence it expects 25.2 percent YoY growth in EBITDA with 367 bps improvement in margin.Motilal Oswal expects cement volumes to increase 3.9 percent YoY and revenue to rise 3.5 percent YoY.The brokerage feels Q2FY21 profit growth could be 104 percent YoY and EBIDTA may increase 25.4 percent with 570 bps expansion in margin. The stock price gained 40 percent in FY21 so far, but gained just 4 percent during September quarter.