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 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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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