Mangalam Cement - Good Operating Performance; De-Levering On The Cards: Anand Rathi

A pile of cement lies on a builders’ slab. (Photographer: Chris Ratcliffe/Bloomberg)

Mangalam Cement - Good Operating Performance; De-Levering On The Cards: Anand Rathi


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Anand Rathi Report

With May 2021 hurt by the Covid-19 second-wave lockdown, Mangalam Cement Ltd.'s volumes fell 18% QoQ, but YoY grew a robust 61% on the low base and greater demand in June 2021.

More non-trade sales led to realisations/tonne declining 2.4% YoY (though QoQ, up 5.4% on price hikes).

With de-bottlenecking complete and the flyash issue at Aligarh resolved, we expect cement volumes/revenue to register 11%/14% compound annual growth rates over FY21-23.

Various cost-optimisation steps and inventory adjustment helped Mangalam Cement contain cost amid the higher cost context.

Ebitda grew 77% YoY to Rs 823 million, ahead of our estimate, and Ebitda/tonne to Rs 1,076, up 10% YoY.

With no major capex left, de-levering is on the cards.

Click on the attachment to read the full report:

Anand Rathi Mangalam Cement Company Update.pdf


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