Views on Ultratech Cement 2QFY2016 Results: Angel Broking

Views of Mr. Shrenik Gujrathi (Sr. Research Analyst - Cement, Angel Broking) on Ultratech Cement 2QFY2016 Results:

"Ultratech Cement 2QFY16 results were better than expected. The company reported an EBITDA of INR 989.1cr v/s INR 829.5cr during 2QFY2015, up 19.2% yoy. It was above our estimate of INR 920.7cr. The EBITDA margin came in at 17.4% v/s 15.4% during 2QFY2015, a jump of200bp yoy. EBITDA margin were above our expectation of 16.3% mainly due to lower raw material and freight expenses. The company reported net sales of INR 5681.7 a growth of 5.6% yoy, which was above our estimate of INR 5648.2cr on back of better than expected volume growth. Cement volume saw growth of 7.6% yoy and came in at 11.51mt which was above our estimate of 11.0mt. On the other hand realization fell by 1.9% yoy to INR 4936/tonne and was below our estimate of INR 5123/tonne. However, PAT came in at INR 393.9cr which was below our estimate of INR 430.6cr mainly due to lower other income. We maintain ACCUMULATE rating on the stock."

Shares of ULTRATECH CEMENT LTD. was last trading in BSE at Rs.2914.7 as compared to the previous close of Rs. 2903.1. The total number of shares traded during the day was 14922 in over 1991 trades.

The stock hit an intraday high of Rs. 2943.85 and intraday low of 2894. The net turnover during the day was Rs. 43487587.

Source : Equity Bulls

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