New Delhi News: UltraTech Cement is set to announce its third-quarter earnings for the fiscal year 2024-25 on January 23, and analysts are closely watching several factors that could shape its performance. The cement giant is expected to report a 20% drop in profit due to lower realization and higher depreciation costs. Profit after tax (PAT) for Q3 is anticipated at ₹1,413 crore, according to Axis Securities, while revenue from operations is projected to rise by 2% year-on-year (YoY) to ₹17,075 crore.
Key Factors to Watch:
Volume Growth: Analysts are predicting an 8-10% increase in cement volumes, primarily driven by strong demand from institutional players and sustained momentum in the housing sector.
Pricing Trends: After a period of subdued pricing, cement prices have shown an upward trend in Q3FY25, with the highest price hikes observed in North India, followed by West Central, East, and South regions.
Demand Outlook: Cement demand improved in Q3 after a slow start to the fiscal year, boosted by a pick-up in activity in October through December. However, lingering challenges like delays in infrastructure fund allocations continue to impact both trade and non-trade segments.
India Cements Acquisition: Investors will also be keen to hear updates on the integration of India Cements, following UltraTech’s acquisition of a 32.72% stake in the company. This acquisition adds 14.5 million tonnes of production capacity to UltraTech’s portfolio, further strengthening its market position.
UltraTech’s management is expected to discuss these topics during an earnings call on January 23, offering valuable insights into its future growth prospects. Analysts will be looking for signs of volume and pricing stability, as well as the company’s strategic plans for expansion, particularly in light of its recent acquisitions.
With cement demand projected to remain robust, UltraTech’s investors will be closely monitoring these developments as the company aims to maintain its industry-leading growth trajectory.