- UltraTech Cement reported a fourth-quarter net income of 24.8 billion rupees, a 9.7% increase year-over-year, but slightly below the estimated 25.38 billion rupees.
- Revenue for the quarter was 230.6 billion rupees, marking a 13% rise compared to the previous year, surpassing the estimated 229.67 billion rupees.
- Total costs increased by 15% year-over-year, reaching 200.4 billion rupees.
- Raw material costs surged by 24% year-over-year to 35.3 billion rupees, lower than the estimated 41.16 billion rupees.
- Power and fuel expenses rose by 7.9% to 52.2 billion rupees, close to the estimate of 52.75 billion rupees.
- Freight and forwarding expenses increased by 11% to 51.8 billion rupees, exceeding the estimated 49.98 billion rupees.
- Other income saw a decline of 25% year-over-year to 1.02 billion rupees.
- Profit before depreciation, interest, tax, and other income was 47.21 billion rupees, an 11% increase from the previous year.
- Total cement sales reached 41.02 million tons, a significant 17% rise year-over-year, surpassing the estimate of 37.46 million tons.
- A dividend of 77.50 rupees per share was declared.
- Global capacity stood at 188.76 million tons per annum (Mtpa), with domestic grey cement capacity at 183.36 million tons per year.
- The company plans to purchase 64.2 million shares of Wonder Wallcare for an enterprise value of INR 2.35 billion.
- UltraTech achieved over 1GW capacity of renewable power installations for captive use.
- The effective capacity utilization was 89% during the quarter and 78% for the full year.
- Operating EBITDA per metric ton, excluding acquired assets, rose by 7% year-over-year to 1,270 rupees per ton.
- The cement sector may face short-term challenges, but the long-term outlook is positive with stable demand expected to support growth.
- A sustainable volume growth of 7%-8% is anticipated, driven by government infrastructure projects and increased rural and urban demand.
- Market analysts provided 37 buy ratings, 4 hold ratings, and 3 sell ratings for UltraTech Cement.
Ultratech Cement on Smartkarma
Analyst coverage on Ultratech Cement on Smartkarma reveals a bullish sentiment regarding the company’s bold entry into the wires & cables market. Nimish Maheshwari‘s report titled “Event Driven: UltraTech’s Bold Foray into Wires & Cables 80,000+ Cr Market” highlights UltraTech Cement’s strategic move to invest INR 1,800 crore in this sector, with plans to launch a plant in Gujarat by December 2026. The report emphasizes UltraTech’s strong financial position, backward integration, and product quality as key factors that could disrupt the highly fragmented market where no player holds more than a 20% market share. This expansion aims to position UltraTech as a diversified leader in building materials, offering cost-efficient, high-quality electrical solutions in collaboration with Hindalco.
A look at Ultratech Cement Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ultra Tech Cement Ltd., a company known for its wide range of cement products, shows a positive long-term outlook, based on the Smartkarma Smart Scores analysis. With an overall momentum score of 5, indicating strong market performance, Ultratech Cement is positioned for potential growth. Additionally, having decent scores in the areas of dividend, growth, and resilience signifies a well-rounded performance across various factors.
Although the value score for Ultratech Cement is moderate, the company’s overall outlook appears promising, with solid scores in key areas contributing to its positive trajectory. As a prominent player in the cement industry, Ultratech Cement‘s relationship with Larsen & Toubro, along with majority ownership by Grasim Industries, provides a stable foundation for continued success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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