Mangalam Cement Q2 Review - Weak Performance On Costs Pressure: Reliance Securities
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Reliance Securities Report
Mangalam Cement Ltd. reported a subdued earnings performance, mainly due to the higher than expected jump in operating costs.
Ebitda fell by 32% year-on-year and 54% quarter-on-quarter to Rs 377 million, as against an estimate of Rs 556 million, while Ebitda/tonne stood merely at Rs 466 (estimate was Rs 556) vs. Rs 552 in Q2 FY21 and Rs 823 in Q1 FY22.
Operating cost/tonne witnessed a sharp 17% quarter-on-quarter jump at Rs 4,173 (+10% year-on-year), which was Rs 436/tonne higher than the estimate.
Notably, input costs/tonne witnessed a significant jump of 26% quarter-on-quarter at Rs 2,149, while other expenditures/tonne also increased over 107% quarter-on-quarter at Rs 483 (+40% year-on-year).
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