- Ultratech posted EBITDA growth of 32% YoY in 3QFY20 despite negative volume growth (-4% YoY). This was on account of better cost savings.
- Realisations declined slightly but EBITDA/t was robust at Rs.1020/t.
- Consolidated PAT grew 100% YoY to Rs.800 Cr.
- Management commentary suggests slight improvement in demand in many regions (particularly the east), with improving sentiment in residential and infra.
- Net debt fell by Rs.2000 Cr. as management focused on deleveraging balance sheet and not overpaying for acquisitions like Emami Cement deal.
- Stock may be undervalued as it trades at only 13.9x FY21E EV/EBITDA.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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