UltraTech Cement Q4 Review - Healthy Asset Utilisation Leads To Better Margins: ICICI Direct

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ICICI Direct Report

In Q4 FY21, UltraTech Cement Ltd. operated with plant utilisation of over 93% backed by strong demand across regions with east operating at almost 100% capacity utilisation.

Rest all other regions barring south operated at over 90% leading to average capacity utilisation of 93% for the company in Q4.

This led to sales volume growth of 29.6% YoY to 26.6 metric tonne. With firm realisations (up 4% YoY, 1.3% QoQ), revenues grew 34.8% YoY to Rs 13,966 crore (our estimate: Rs 12,917 crore).

Better fixed cost absorption kept cost of production under check that increased 1% QoQ only while remaining flat YoY.

As a result, Ebitda/tonne for the quarter was higher at Rs 1,321/tonne (versus our estimate of Rs 1,218/tonne).

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