Motilal Oswal: India Cements' Q1 Beat Led By Improved Margins
A worker carries a sack of cement under a conveyor in a warehouse in Ferozabad, Uttar Pradesh, India (Photographer Udit Kulshrestha/Bloomberg)

Motilal Oswal: India Cements' Q1 Beat Led By Improved Margins

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

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.

Click on the attachment to read the full report:

Motilal Oswal India Cement Q1FY21 Result Review.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.