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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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.

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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