PL First Cut - Ultratech Cement - In-line; EBITDA/t declined 13% YoY despite strong 20% volume growth; P&F cost disappoints

PL First Cut – Ultratech Cement – *Tushar Chaudhari – Research Analyst, Prabhudas Lilladher Pvt Ltd*PL First Cut – Ultratech Cement – *Tushar Chaudhari – Research Analyst, Prabhudas Lilladher Pvt Ltd*

Ultratech Cement (UTCEM In, cmp Rs 8,224, Mcap Rs 2.37 tn, Unrated): In-line; EBITDA/t declined 13% YoY despite strong 20% volume growth; P&F cost disappoints

• UTCEM’s revenue grew strong 18.5% YoY to Rs 172.5 bn (down 5% QoQ) on robust 20.7% YoY volume (down 4.5% QoQ) as average realization declined 2% YoY to Rs 5,904/t (flat QoQ).

• EBITDA grew just 2.3% YoY to Rs 31.7 bn (down 5% QoQ) on higher RM costs, power and freight charges.

• EBITDA per ton declined 13% YoY to Rs 996/t led by higher RM cost and freight charges. RM cost per ton was up 4% YoY to Rs 1,102/t.

• Power and Fuel cost per ton increased 2% to 1,534/t; which was expected to come down sharply.

• Other expenses declined 8% YoY to Rs 661/t.