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UltraTech Cement share rises 2% ahead of December qtr results; details here

The uptick in the UltraTech Cement share price came in anticipation of Q3 results, which will be announced later in the day

cement

SI Reporter New Delhi

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UltraTech Cement ahead of Q3 results: Cement manufacturer UltraTech Cement shares were in demand on Thursday, January 23, 2025, as the scrip raced as much as 2.20 per cent to hit an intraday high of Rs 10,930.05 apiece.
 
The uptick in the UltraTech Cement share price came in anticipation of Q3 results, which will be announced later in the day.
 
What to expect from Q3? 
Brokerage firms are projecting a sequential (Q-o-Q) improvement in earnings for cement companies in the quarter ending December 31, 2024, driven by higher cement prices and increased volumes. 
  However, they expect earnings to remain subdued year-on-year due to prices still being around 8 per cent lower than the previous year. According to a research note from Elara Capital, the cement industry is set for a recovery in Q3FY25, supported by higher cement prices and operating leverage, though earnings may be muted on a Y-o-Y basis.
 
  On the other hand, Nuvama Institutional Equities (Nuvama) highlights that while lower power and fuel prices are beneficial for the industry, earnings downgrades for FY25E–26E may be on the horizon due to volatile pricing and lower-than-expected volume growth in 9mFY25, amidst aggressive capacity expansions.
  As per the average estimates of four brokerage firms compiled by Business Standard, UltraTech’s revenues are expected to rise 1.09 per cent year-on-year to Rs 16,922.93 crore in Q3FY25, compared to Rs 16,740 crore in the same quarter last year, and increase 8.24 per cent sequentially from Rs 15,634.7 crore in the previous quarter.
 
Brokerage firms anticipate the company’s profit after tax (PAT) to be Rs 1,289.6 crore, marking a decline of 27.34 per cent Y-o-Y but a rise of 56.3 per cent Q-o-Q. The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) is expected to be Rs 2,761.4 crore, reflecting a 15.2 per cent Y-o-Y drop but a 36.8 per cent increase Q-o-Q, based on the average of these estimates. READ MORE
 
About UltraTech Cement
 
UltraTech Cement is among the largest cement manufacturers in India, with a production capacity of over 120 million tonnes per annum (MTPA) as of 2024. A subsidiary of the Aditya Birla Group, the company operates more than 20 integrated plants, along with several grinding units and bulk terminals across the country. 
 
UltraTech is a leader in the Indian cement industry, holding a dominant share of the market. It also has a major presence in international markets through its export business. The company’s product range includes Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Ready Mix Concrete (RMC), catering to various construction needs, from residential buildings to large-scale infrastructure projects.
 
At 10:11 AM, UltraTech Cement shares were trading 1.81 per cent higher at Rs 10,888.10. In comparison,  BSE Sensec was trading 0.28 per cent higher at 76,617.12 levels.

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First Published: Jan 23 2025 | 10:19 AM IST

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