Dolat Capital: Shree Cement Q1 Results A Beat On All Fronts
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Dolat Capital Report
Results were above estimates on all fronts. Shree Cement Ltd. posted 23.4% YoY de-growth in revenue to Rs 23.3 billion due to 18.6% YoY volume decline to 4.9 metric tonne coupled with decline in blended realisation by 5.9% YoY (up 1.2% QoQ) to Rs 4,716/tonne.
Ebitda down 22.3% YoY to Rs 7.0 billion and adjusted profit after tax up 2.1% YoY to Rs 3.7 billion.
We expect 4.2% and 3.3% revenue and Ebitda compounded annual growth rate and adjusted profit after tax decline of 2.9% over FY20-22E led by 7.0% decline and 15.0% growth in volume and 0.5% decline and 2.0% growth in blended realisation in FY21E and FY22E.
We increase our revenue estimates by 7.4% each for FY21E and FY22E and broadly maintain Ebitda margins to factor Q1 FY21 results.
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