Higher coal, maintenance charges hurt margins: As expected, higher
coal costs (Ultratech sources approx 40% of its coal requirements from
imports, power and fuel constitute 35-40% of operating costs and costs/MT
increased by 36% y/y and 10% q/q) and maintenance charges hit margins.
While net profit at Rs1.64bn (-12% y/y,-38% q/q) for Q2FY09 was in line
with our estimates (lower tax rate) EBITDA at Rs3.18bn was 6% below
estimates. EBITDA margins at 22.4% were 200bps lower than our estimates
of 24.4%.

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