Ultratech Cement - 4QFY13 Result Update - Nirmal Bang

- UltraTech Cement's (UCL) 4QFY13 financial performance was broadly in line with our as well as Bloomberg consensus estimates, with net sales at Rs53.9bn (1%/4% below our/Bloomberg consensus estimates, respectively) and EBITDA at Rs12.0bn (3% below our and Bloomberg consensus estimates).

- Tax provisioning jumped 19% in the wake of additional deferred tax liability of Rs870mn because of the increase in surcharge on income tax which was offset by higher other operating income and lower depreciation than our estimates.

- Consequently, PAT at Rs7.26bn was above our estimate by 3%.

- We expect cement prices to remain stable in the short-term and rise in 2HFY14 on likely improvement in demand.

- Hence, we have retained our Buy rating on the stock with a TP of Rs2,179.

Source : Equity Bulls

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