UltraTech – Bumpy road ahead

UltraTech is pinning its hopes on the demand scenario because of the government’s focus on infrastructure and housing, although the near-term outlook for the industry appears a bit subdued

Sachin Pal
May 02, 2022 / 09:16 AM IST
UltraTech – Bumpy road ahead

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PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

UltraTech Cement, India’s largest cement manufacturer, has posted a decent set of results for the last quarter of FY22. Volumes were stable in spite of tough market conditions, though operating margins declined as the company continues to face a challenging cost environment amid rising input prices. Quarterly result highlights UltraTech’s revenue growth in the March quarter was purely led by higher realisations as domestic volumes came in flat at 26.4 metric tonnes (MT). The earnings before interest, tax, depreciation and amortisation...