Motilal Oswal: India Cements' Q1 Beat Led By Improved Margins
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Motilal Oswal Report
The India Cement Ltd.’s Q1 FY21 result was a surprise, led by a sharp rise in realization and lower fixed costs.
Ebitda per ton, thus, reached decade-highs of Rs 1,090 per tonne (from decad-lows of Rs 255 per tonne in Q4 FY20), driving 131% QoQ growth in Ebitda.
Volumes fell 53% YoY to 1.43 metric tonne (estimate 1.52 metric tonne) on weak demand due to the Covid-19 impact. Thus, revenue fell 48% YoY to Rs 7.6 billion.
Cement realization rose 22% QoQ (up 10% YoY) to Rs 5,301 per tonne (estimate Rs 5,107 per tonne), driven by a sharp price hike in southern India.
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