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UltraTech Q2 results, Indian Markets were gripped by BEARS…. Market updates for 22/10/18

PurpleTrades - stock market courses > News > UltraTech Q2 results, Indian Markets were gripped by BEARS…. Market updates for 22/10/18

Report by- Sabyasachi Bhattacharya

 

UltraTech announced their Q2 results; Demand remains strong-

UltraTech Cement, India’s largest cement manufacturer, posted a decent set of earnings for the second quarter of FY19. The company reported healthy double-digit volume growth and stable realisations. Operating margin declined on a sequential basis as it continues to face a challenging cost environment, amid rising input prices. The management has a strong cost focus and remains well-positioned to benefit from an upturn in the cement cycle. Let’s take a look at the key insights in their report-

  • Standalone revenue grew 20 percent year-on-year at Rs 7,923 crore in Q2 FY19 mainly driven by consolidation of JP Associates’ (JPA) cement assets. Volumes came in 20 percent higher compared to last year.
  • Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter gone by stood at Rs 1,293 crore compared to Rs 1,337 crore in the same period last year. EBITDA margin contracted around 340 basis points on a yearly basis as constant rise in input costs dragged margin.
  • Cement prices remained largely flat despite a weak monsoon. Higher June exit prices in most parts of India supported realisations in the quarter gone by. Cement prices were up in north, central and south regions, but was offset by weakness in the west.
  • Gradual ramp-up of cement assets acquired from JPA boosted volume growth. Overall capacity utilisation in Q2 FY19 stood at 65 percent as compared to 61 percent YoY.
  • During the quarter gone by, the company commissioned two waste heat recovery system (WHRS) units of 13 MW each, which takes its total capacity to 85 MW. It plans to increase WHRS capacity to 121 MW by FY20. With this, UltraTech should be able to meet 15 percent of its power requirements. The management is also focusing on other renewable energy sources (wind and solar) for its in-house power requirements.
  • Driven by large scale infrastructure activities, cement demand witnessed a healthy 10-11 percent growth in Q2 FY19. UltraTech expects the demand trend to continue for the rest of the year and has indicated 8-10 percent volume growth for the industry.

 

Take a look at the company’s report, released today.

Source- MoneyControl, Purple Trades Research Department       

 

 

Volatile Monday on Dalal Street as Indian Indices move upwards-

Chart source- ChartInk

Indian Markets yet again fell majorly as bears rule the day on Dalal Street. Nifty as you can see in the charts opened up higher due to good Q2 results posted by HDFC Bank. HDFC Bank currently has a huge market share in Nifty due to which the gap up opening was expected but from there-on the markets just went down throughout the day making lower lows and lower highs. During the mid-hours of the day Nifty incurred a support provided by the previous day’s close but couldn’t sustain that level and fell further down. Weakness in the last hour of trade dragged equity benchmarks to low points. The Nifty ended the session below 10,250-mark, while the Sensex shed over 180 points. Against this, the market had a strong start, with the Sensex and Nifty having risen a percent each. Financials gave up all of their gains and were a lag on the benchmarks. Along with them, energy, IT, and metals were the big losers. Sell-off in midcaps, too, added to the weakness, with the Nifty Midcap index falling over a percent lower. At the close of market hours, the Sensex closed down 181.25 points or 0.53% at 34134.38, while the Nifty fell 58.20 points or 0.56% at 10245.30. The market breadth was negative as 832 shares advanced, against a decline of 1,758 shares, while 980 shares were unchanged. ICICI Bank, NTPC, Indiabulls Housing and Eicher Motors are the top gainers, while IndusInd Bank, Reliance Industries, and BPCL lost the most. Major Global Indices were trading in the Green today but European markets were down as CAC and DAX were seen in the red.

Let’s take a look at the performance of major Indices.

 

Source- MoneyControl, Purple Trades Research Department   

 

 

 

Top sectors that moved the market today-                            Data source- Moneycontrol

 

 

Top Gainers for today-                                                                                        Data source- Moneycontrol

 

 

Top losers for today-                                                               Data source- Moneycontrol

 

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