Despite the decline in profit, the numbers surpassed Street estimates, which had pegged net profit at Rs 1,195 crore. Revenue also outperformed expectations of Rs 16,854 crore.
EBITDA for the third quarter fell 8% YoY to Rs 3,131 crore and margins, too, declined to 17% in the same period.
UltraTech achieved a capacity utilisation of 73% during the quarter. Domestic sales volume for the reporting grew 10% YoY. Energy costs were lower by 13% YoY, mainly on account of a decrease in fuel costs.
As part of its ongoing expansion programme, UltraTech commissioned an additional 1.8 mtpa capacity. With the acquisition of India Cements, UltraTech’s cement capacity increased to 171.11 mtpa, on a consolidated basis.
Upon the completion of the ongoing expansion projects and the acquisition of Kesoram Cement (10.75 MTPA), UltraTech will achieve the milestone of more than 200 mtpa cement capacity in the country by the end of FY27.Also Read: RBI injects over Rs 1.5 lakh crore via VRR auctions, buybacks
Should you buy, sell, or hold UltraTech Cement’s stock? Here’s what analysts say:
Macquarie
Macquarie maintained an ‘Outperform’ rating on UltraTech Cement with a revised target price of Rs 12,705 (raise by 7%). The brokerage expects demand recovery and cement price hikes from the lows of the second half of CY2024 to positively impact sector earnings. UltraTech Cement is considered well-positioned due to its timely capacity additions and a diversified regional mix. The company’s focus on sustainable cost savings further strengthens its outlook. Macquarie views UltraTech as the top pick in the Indian cement industry.
Also Read: Small IT flaunts strong numbers, spark for even better show
Citi
Citi maintained a ‘Buy’ rating on UltraTech Cement, increasing the target price to Rs 13,100 from Rs 12,500.
The brokerage estimates a 12% volume CAGR through FY25–27, with EBITDA per ton showing upside potential, primarily driven by cost efficiencies and sustained profitability. The stock is trading at $180 EV/T, significantly below its historical peak of $250 per ton. Additionally, cement prices have risen by 1.5% in Central and West India, further supporting the positive outlook.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
