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ICICI Securities: Better Realisation Drives Orient Cement’s Outperformance In Q1

ICICI Securities: Better Realisation Drives Orient Cement’s Outperformance In Q1

A construction worker trowels cement onto wall isolation material on the Prager Karree residential ‘rental-only’ apartment block building site. (Photographer Krisztian Bocsi/Bloomberg)
A construction worker trowels cement onto wall isolation material on the Prager Karree residential ‘rental-only’ apartment block building site. (Photographer Krisztian Bocsi/Bloomberg)

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.

ICICI Securities Report

Orient Cement Ltd.’s Q1 FY21 Ebitda at Rs 982 million (down 34% YoY) was better than our/consensus estimate of Rs 843 million owing to higher realisation, which increased sharply by 20.4% QoQ and 10% YoY (our estimate 17% YoY).

Total cost per tonne increased 7% YoY while volumes declined 46% YoY to 0.82 million tonne both broadly in line with estimates.

Accordingly, Ebitda/tonne increased 21% YoY to an all-time high at Rs 1,198/tonne (our estimate Rs 1,015/tonne).

Management had earlier deferred expansion plan due to Covid-19 and any decision on this front is likely to depend upon demand recovery and comfort on leverage.

Click on the attachment to read the full report:

ICICI Securities Orient_Cement Q1FY21 Result Update.pdf

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