Ultratech Cement Ltd. | Q3FY15 Result Update | Maintain HOLD with PT of Rs3,029 | Net sales and EBITDA broadly in-line; miss on PAT due to higher tax rate :: IndiaNivesh

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Q3FY15 Standalone Result Highlights:  On back of 42.8% y/y increase in dispatches to 14.27mnt (due to recent capacity additions) and 17.3% decline in average blended realization to Rs3,961 per tn, Ultratech reported 16.3% y/y top-line growth to Rs 56,014mn.for Q3FY15, Overall capacity utilization of the company remained flat y/y at ~70%  Company reported EBITDA of Rs 9,573 mn, up 20.3% y/y. EBITDA margins of the company were at 17.1% (vs. 16.5% in Q3FY14). Reported EBITDA margin re-affirm our view that worst on EBITDA margin front is behind.  Mainly on account of higher tax rate at ~34.7% (vs 27.3% in Q3FY14) and interest cost of Rs 1539.8 mn (70% y/y increase), PAT of the company degrew y/y by 1.5% to Rs 3,644 mn. Consequently, Reported PAT margins were at 6.5% compared to 7.7% in Q3FY14.

Q3FY15 Standalone Result Update:  Ultratech reported 16.3% y/y top-line growth to Rs56,014mn. On q/q basis revenues grew by 3.2%. As company has added 7.7 mnt capacity in last one year (4.8 mnt-Gujarat and 2.9 mnt-Rajasthan), this top-line growth of the company was mainly due to 42.8% growth in dispatches to 14.27 mnt. We expect demand growth to have been mainly driven from Northern & Western India based markets.

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