UltraTech Cement Q1 FY10 Result Update

Ultratech Q1 FY10 Q1 FY09% Change YOY Revenue EBITDA OP Mrgn 3225 Net profit NP mrgn 2118 Financials.. Rs in mln

Investment Rationale Robust revenue growth backed by strong volumes OP Margin improves by 700 b points on softening of imported coal costs and captive power generation Ultratech (23.10 MT) surpasses ACC (22.40 MT) to become No 1 player in terms of capacity with commissioning of residual capacities at APCW in Q1 All TPP fully operational. Total capacity 236 MW to cater 80 % of power requirement of the company Intends to incur additional capex of Rs 600 crs to be funded by internal accruals for setting up of 25MW TPP Awaspur (Maharashtra) & adnl grinding & evacuation facility at Gujarat Units. Substantial upside if strong demand persists

Market Data CMP – wk H/L – 920 / 245 Mkt cap – 97 bn Book val – 289 P/E – 8 x FY09 EPS – Q1- 33

BUY …TP Rs. 960 CMP 776 Currently trades at 9.8 x FY09E BUY with price target of 960 (10 x FY10E)

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