HDFC Securities: Star Cement Posts -Pent-Up Demand Execution, Upcoming Siliguri Units To Aid Volume Growth
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Star Cement Ltd. reported 37/42/49% YoY consolidated revenue/ Ebitda/ adjusted profit after tax decline to Rs 2.92/0.65/0.43 billion respectively.
Total sales volume fell 38/49% YoY/QoQ to 0.45 million metric tonne, which is due to significant sales loss in April and early May.
However, Star Cement registered volume growth in June, despite Covid-19 impact. Net sales realisation firmed up 6% QoQ (up 5% YoY), aided by price hikes and lower clinker sales in Q1.
Pent-up demand execution and upcoming Siliguri grinding units should accelerate volume growth hereon.
Further, the upcoming e-auction of local coal should aid fuel cost reduction. We estimate 15% Ebitda compound annual growth rate during FY20-23E.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.