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Dolat Capital Report
Birla Corporation Ltd. results were broadly in line however, adjusted profit after tax was above estimates.
The Company posted 35.1%/ 39.4%/ 51.1% YoY de-growth in revenue/ Ebitda/ adjusted profit after tax to Rs 12.2 billion/ Rs 2.3 billion/ Rs 658 million in Q1 FY21 due to 33.3% YoY de-growth in volumes coupled with -1.1% YoY realization growth (up 1.4% QoQ) to Rs 4,956/ trillion.
We expect 6.6%/ 10.7%/ 10.5% revenue/ Ebitda/ adjusted profit after tax compound annual growth rate over FY20-22E led by -12.1%/ 26.5% volume growth and 1.0%/ 2.0% cement realization growth in FY21E/ FY22E.
We like Birla Corporation’s focus on trade segment (86% share), increasing share of premium products (36% share in trade), higher share (94%) of high margin blended cement and sizable presence in relatively better regions of Central, North and expansion in West.
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