Ultratech Cement - Q3FY13 Preview - HDFC Securities

The results are expected to be muted with volumes to grow a modest 1% to 10.2 mn tons (due to overall slackness in all-India demand, primarily in South India) with average realisation advancing 8% y-o-y. Revenues are expected to grow y-o-y led by subdued volume growth of 1% y-o-y.

Freight costs are expected to increase q-o-q while P&F costs' decline of ~5% is expected to negate its impact. The increase in cost/t for Ultratech is expected to be lowest compared to ACC and Ambuja (-0.1% q-o-q). However led by lower realizations resultant EBITDA/t is expected to decline q-o-q (flat y-o-y).

Higher interest costs coupled with marginally higher tax rate could lead to net profits declining y-o-y.

Source : Equity Bulls

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