#EBITDA #MARGIN

In Q1 FY24 the EBITDA margins were at 17.2%. This was due to weaker realization and higher costs. Whereas in Q2 FY24 the EBITDA margins improved by 200 bps YoY and stood at 15.9%. Overall, in FY24 the margins were at 18.3%. In Q3 FY25 the domestic grey cement business excluding India Cements, cost of raw material remained flat on a YoY at ₹633 per tonne, power cost decreased by 5% to ₹402 per tonne, fuel cost decreased by 16% YoY to ₹883 per tonne, logistics cost decreased by 5% YoY to ₹1,161 per tonne and other cost decreased by 8% YoY to ₹784 per tonne. In 9M FY25, EBITDA margin was 16.0% as against 17.5% in the same period previous year. As a percentage of revenue in 9M FY25 raw material cost increased by 300 bps YoY; freight charges increased 100 bps YoY and other expenses increased by ~100 bps YoY. On the other hand, in the same period, power and fuel cost decreased by ~300 bps YoY and employee cost remained flat. This led to a ~200 bps YoY contraction in EBITDA margin.

#PAT #MARGIN

In FY24, PAT margin stood at 9.9%. In 9M FY25, PAT margin was 7.8% and it contracted by ~160 bps YoY. Effective tax rate during the period under review was ~20%.

#ROCE

For FY24, capital employed for the company stood at ₹73,891 cr and earnings before interest and tax was ₹10,390 cr. Capital employed and PBIT grew by 8.75% and 26% YoY, respectively. The ratio witnessed an increase compared to the previous year on account of improved profits. As on 31st March 2024, Return on Capital Employed was 15.42%.

#ROE

The ROE of the company has been volatile over the years. In FY24, the net worth stood at ₹60,227 cr and net profit improved to ₹7,003 cr impacting the ratio positively to 12.25%. ROE on YoY basis improved by ~126 bps. Improvement in ROE was due to better net profit margin on a YoY basis.

#COMPANY #POTENTIAL

• India's infrastructure sector is poised for remarkable growth, with an estimated 15.3% compound annual growth rate in investments, projected over the next five years. This growth is expected to result in a cumulative expenditure of $1.45 trillion. (Morgan Stanley Report) • In the Union Budget for FY26 the government made an allocation of ~₹11.2 lakh cr towards infrastructure. (www.india.gov.in) • In FY25, cement demand is projected to grow by ~7%-8% driven by an increase in construction activities throughout the country, spread across the infrastructure and housing sector. • In Union Budget FY26, the central government has allocated ₹3.06 lakh crore towards National Highways Authority of India, Pradhan Mantri Gram Sadak Yojna and Road Works (MoRTH). (www.india.gov.in) over time. (GoI, Economic Survey 2023-24) (rural.gov.in) • The world’s per capita consumption is about 50 kg, whereas India’s is about 260 kg. Despite being the second-largest producer of cement, per capita consumption is quite subdued in India, which provides a wide range of opportunities to grow exponentially • The union cabinet has approved the proposal for extension of the Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) till FY29 for construction of additional 2 crore houses. For FY26, the government has allocated a budget of ₹ 54,832 crore towards the same. • Responding to the increasing demand from the infrastructure and housing sectors, the Indian cement industry is poised to add new production capacities. As much as ~35-40 MT capacity is expected to be commissioned in the next fiscal, with ~60%-65% concentrated in the eastern and southern regions. CASE STUDY • Capacity utilization is anticipated to rise to ~72% in FY25 from 68% in FY23, supported by higher cement volumes.

#COMPANY #OUTLOOK

• UltraTech Cement Middle East Investments Limited, ("UCMEIL") the company’s wholly owned subsidiary in UAE, investing in 29.39% equity share capital of 'Ras al Khaimah Co. for white cement and construction materials PSC', ("RAKWCT') a company listed on the Abu Dhabi stock exchange. UCMEIL has notified its intention of making a partial conditional cash offer for acquiring 158,049,610 shares, representing 31.6% of the issued and paid-up share capital of RAKWCT. Together with the existing shareholding in RAKWCT, UCMEIL ‘s aggregate shareholding in RAKWCT stands increased to 54.39%. Consequently, RAKWCT has become a subsidiary of UCMEIL with effect from 10th July, 2024. • During Q1 FY25, the board of directors have approved purchase of additional ~32.72% stake in India Cements Limited. In June 2024, the company had made a financial investment in India Cements to acquire ~22.77% stake. Post regulatory approvals, they will pay ~₹3,954 crore (~₹390/share) to acquire the remaining stake through an open offer. • Under the demerger scheme of Kesoram industries, Ultratech will issue 1 equity share of the face value of ₹10/- each for every 52 equity shares of Kesoram of face value ₹10/- each as recommended by the valuers and accepted by the Board. For the purpose of this transaction, 59,74,301 new equity shares of the company will be issued to the shareholders of Kesoram as on the record date as defined in the Scheme. This will increase UltraTech’s equity capital to ₹294.66 cr consisting of ₹29.47 cr equity shares of ₹10/- each. • The cement business of Kesoram consists of 2 integrated cement units at Sedam (Karnataka) and Basantnagar (Telangana) with a total capacity of 10.75 MTPA. Out of this total capacity, 8.50 MTPA is clinker backed and 2.25 MTPA is surplus grinding capacity. The cement business also has a 0.66 MTPA packing plant in Solapur, Maharashtra. The transaction will provide UltraTech with the opportunity to extend its footprint in the highly fragmented, competitive, and fast growing Western and Southern markets in the country.

Ultratech Cement 10000-11400
Expected level 13800
Support 9735

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Top 10 states in India with the highest Gross State Domestic Product. in FY25.

1. Maharashtra: 42.67 lakh crore
2. Tamil Nadu: 31.55 lakh crore
3. Karnataka: 28.09 lakh crore
4. Gujarat: 27.9 lakh crore
5. Uttar Pradesh: 24.99 lakh crore
6. West Bengal: 18.8 lakh crore
7. Rajasthan: 17.8 lakh crore
8. Telangana: 16.5 lakh crore
9. Andhra Pradesh: 15.89 lakh crore
10. Madhya Pradesh: 15.22 lakh crore

Source: Forbes

15 Sector Leader Stocks for Long term Investment!

1. Wire - Polycab
2. Railway -TWL
3. Telecom - Reliance
4. Paint - Indigo Paints
5. Banking - HDFC Bank
6. Cement - Ultratech
7. Airline - Indigo
8. Personal Care - HUL
9. Food - Nestle
10. Retail - Dmart
11- Footwear - Bata
12- Chemical - Deepak Nitrite
13- Life Insurance - HDFC Life
14- Auto - Maruti Suzuki
15- IT - TCS

Top Stocks bought by Mutual Funds in March

- Lets try to understand how they Positioned Before Tariff Turbulence & Q4 result season
- And decode where the smart money moved

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🔹Axis Bank Ltd ➡️ +8.51%
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🔹Piramal Pharma Ltd ➡️ +18.39%

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🔹Bajaj Auto Ltd ➡️ New Entry 🆕
(Buy Value: ₹214.06 Cr)

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Dalmia Bharat Limited company details report

Dalmia Bharat Limited is a leading cement manufacturer in India with a wide range of products catering to customers across 23 states in the country. Their operations are spread across 15 plants with a cement production capacity of 46.6 MTPA and 23.5 MTPA of clinker capacity as on 31st December 2024. The solar power capacity stood at 134 MW (megawatt) and Waste Heat Recovery System Power to 72 MW as on 31st December 2024. Total renewable energy (RE) capacity including group captive arrangements was 252 MW. The company continuously focuses on increasing the share of blended cement to further reduce their carbon footprint. They were also engaged in the refractory business through Dalmia Cement (Bharat) Limited. In FY22, it has been transferred to an independent entity. Regional capacity mix as on 31st December 2024 was as follows – 45% in East; 32% in South; 17% in North-East and 6% in West. The company offers a wide range of cement variants through their three marquee brands – Dalmia Cement, Dalmia DSP and Konark Cement. Their diverse product offerings cater to both individual consumers and institutional customers with multiple cement varieties. The management has a vision of achieving 49.5 MTPA (excluding Jaiprakash Associates acquisition) capacity by end of FY25 and ~110130 MTPA capacity by 2030. Recently, DBL had announced a binding framework agreement for the acquisition of clinker, cement and power plants from Jaiprakash Associates Limited and its associate having total cement capacity of 9.4 MTPA (along with Clinker capacity of 6.7 MTPA and Thermal Power plants of 280 MW) at an Enterprise Value of ₹5,666 cr. In a bid to exit from the non-core business areas, they had completed the sales of Hippo Stores. They also offloaded 5.2% equity stake in the India Energy Exchange (IEX) for ₹614 cr in FY22. Proceedings from these two sales was used for business growth purposes. To independently focus on the refractory business, Dalmia-OCL, the refractory business of the Dalmia Bharat Group, has merged all its domestic businesses into a single consolidated entity as Dalmia Bharat Refractories Ltd

#SALES #GROWTH

In FY24, the sales stood at ₹14,691 cr, an increase of 9% on a YoY basis. The sales volume during the period stood at 28.8 MTPA v/s 25.7 MTPA in FY23. The sales realization per ton during the period was flat YoY and stood at ₹5,101. It added 6 MTPA of cement capacity during the year and capacity as on 31st March 2024 stood at 44.6 MT. The closing capacity is excluding the acquisition of cement assets of Jaiprakash Associates. They have ongoing work for 1 MT at Ariyalur, TN and 1 MT at Kadapa, Andhra Pradesh is under trials. The group continued to retain a strong presence in the Southern, Eastern and North-Eastern markets while increasing sales volume in the region of West and Central India. In 9M FY25, sales volume grew by 4% YoY to 20.8 MT. Revenue from operations during the period was ₹9,889 cr, a YoY de-growth of 4.8%, leading to a realization decline of ~8.4% to ₹4,754 per ton as against ₹5,192 per ton in 9M FY24.

#EBITDA #GROWTH

In FY24, the EBITDA stood at ₹2,639 cr, up by 13.4% YoY. EBITDA per tonne was ₹916 v/s ₹901 in FY23. The improvement was primarily due to decline in power and fuel cost of 21% YoY. EBITDA was impacted due to decline in cement prices. In 9M FY25, the company generated an EBITDA of ₹1,614 cr as against ₹1,985 cr in 9M FY24. EBITDA per ton declined by 22% to ₹773 per ton due to increase in other expense and freight expenses during the period. Increase in other expense and freight was driven by higher maintenance in Q2 FY25 and discontinuation of tolling agreement with JP associate due to which the company had to service the central region through its eastern plants, respectively. Lead distance during Q3 FY25 was 269 km and in Q3 FY24 was 287 km.

#PAT #GROWTH 5 Year CAGR 19.6%

In FY24, the PAT registered was ₹854 cr, as compared to ₹529 cr in FY23. However, net consolidated PAT for FY24 was ₹826 cr v/s ₹1,035 cr in FY23 in which the profit from share associates were ₹554 cr. Finance cost increased to ₹386 cr mainly due to an increase in gross debt during the year, and further higher weighted average cost of total borrowings from 5.9% p.a. in FY23 to 8.3% p.a. in FY24 on account of an increase in bank interest rates. In 9M FY25, PAT declined by 51% to ₹260 cr due to an exceptional item pertaining to advances paid to JP Associate for tolling agreement which was to be adjusted at the time of acquisition, however, due to uncertainty in recovery a provision ₹113 cr has been created.

#EBITDA #MARGIN

In FY24, the EBITDA margin registered was 18%. Power and fuel cost per ton decreased by 21% YoY to ₹1,135 due to softening in commodity prices and change in fuel mix, logistics cost per ton increased by 2.3% YoY to ₹1,113 and raw material cost per ton increased by 3.8% YoY to ₹776. In 9M FY25, the company reported an EBITDA margin of 16.3% as against 19.1% in 9M FY24. As a percentage of operating revenue, cost of raw material per tonne decreased by 80 bps to 15.8% and power and fuel cost decreased by 90 bps YoY to 21.5%. In the period, employee cost increased by 40 bps YoY to 6.8%, freight cost increased by 240 bps YoY to 23.4% and other expense increased by 180 bps YoY to 16.2%.

#PAT #MARGIN

PAT margin stood at 5.83% during FY24 v/s 5.81% in FY23. The margins remained flat on YoY basis. Effective tax rate during the year stood at ~20% as against ~18% in FY23. In 9M FY25, PAT Margin for the period was 2.63% as against 5.14% in 9M FY24. During the period under consideration effective tax rate was 26%.