Shares of UltraTech Cement advanced 2 percent to Rs 9,903 intraday on April 29 ahead of the company declaring its fourth quarter results later in the day.
At 11:10 am, the counter was trading at Rs 9,877, up 1.8 percent from the previous close on the NSE. The cement majors' share price has slipped 6 percent since the start of the year.
India's largest cement company is poised to report robust Q4 earnings, both year-on-year (YoY) and sequentially, driven by strong volume growth amid improved demand. However, operational efficiency metrics like EBITDA per tonne may suffer due to weak cement prices during the period.
According to the average estimate of 12 brokerages, the net profit is expected to reach Rs 1,976.58 crore, marking a 23 percent surge on-year and a 15 percent rise on-quarter. Additionally, net revenue is anticipated to rise 9 percent YoY and 17 percent QoQ, reaching Rs 18,078.29 crore. EBITDA is also expected to grow by 11 percent YoY and 14 percent QoQ to Rs 3,276 crore.
The cement sector saw a slow start to the quarter due to harsh winters in the North and festivities in the South. The East struggled with fiscal challenges but showed signs of recovery towards the quarter's end. Cement prices were under pressure in Q4FY24 due to rolled-back price hikes amid subdued demand. Price hikes initiated in the September-October 2023 were mostly reversed in recent months.
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