Ultratech Cement - 4QFY2013 Result Review - Angel Broking

Ultratech's 4QFY2013 stand-alone topline was below estimates at Rs. 5,389cr on account of both lower than estimated volumes and realization. The company's grey cement volumes (incl. clinker) remained flat yoy at 11.13mn tonnes. White cement volumes fell by 4.3% yoy to 0.16mn tonnes. Blended realizations for the quarter stood at Rs. 4,727/tonne, higher by 1% on a yoy basis. However, the company's operating costs/tonne was below estimates resulting in a superior OPM of 23.4% vs. estimated 21.5%. Interest expenses too was lower by 18.4% yoy at Rs. 48cr. Net Profit fell by 16.3% yoy to Rs. 726cr and was in-line with estimates.

Meanwhile there are media reports that Ultratrech is in final-stage talks to buy Jaypee Associates 4.8mtpa cement plants in Gujarat for Rs. 4,100cr. The news has not been confirmed by management of both the companies.

We maintain our neutral view on the stock.

Source : Equity Bulls

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