India Cements Q3 Review - High Leverage Remains Key Concern: ICICI Securities 
Indian labourers unload bags of cement from a truck in Gurugram, India (Photographer: Adam Ferguson/Bloomberg News)

India Cements Q3 Review - High Leverage Remains Key Concern: ICICI Securities 

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ICICI Securities Report

The India Cements Ltd.’s Q3 FY21 Ebitda at Rs 2.2 billion (up 65% YoY) was better than our and consensus estimates owing to higher than expected realisation.

Cement realisation (including ready mix concrete) declined 3.5% QoQ (up 9% YoY) versus our estimate of 4.5% QoQ decline.

Volumes declined 11% YoY and total cost/tonne was flat YoY – both broadly in line with our estimates.

Accordingly, cement Ebitda/tonne increased 78% YoY to Rs 889/tonne (our estimate Rs 812/tonne).

We broadly maintain our FY21-23E Ebitda; though raise our target price to Rs 120 per share (earlier: Rs 100) based on seven times FY23EV/E on half-yearly rollover.

Click on the attachment to read the full report:

ICICI Securities India Cements Q3FY21 Results Update.pdf


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