Shree Cement Q1 Review - Higher Costs, Lower Volumes Led The Miss: Prabhudas Lilladher

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. .Prabhudas Lilladher Report.Shree Cement Ltd.’s reported Q1 FY22 earnings below our/consensus estimate by 7%/2% due to higher than expected costs and lower volumes.Ebitda/tonne expanded 3% QoQ/4% YoY to Rs 1,480 (our estimate: Rs 1,555). Shree Cement maintained meaningful differential in Ebitda margins over its peers (Ambuja Cements Ltd. and Ultratech Cement Ltd.) on back of higher share of cheaper renewable power, indirect tax incentives and logistics advantage. However, the gap has contracted significantly over last one year due to optimisation of realisations and extensive work on rationalisation of freight cost done by the peers. We believe that gap would further narrow down with multi-fold increase in share of renewable power and further reduction in lead distance coupled with commissioning of new plants..Click on the attachment to read the full report:.DISCLAIMERThis 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 author entity 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.

Shree Cement Q1 Review - Higher Costs, Lower Volumes Led The Miss: Prabhudas Lilladher

Shree Cement Q1 Review - Higher Costs, Lower Volumes Led The Miss: Prabhudas Lilladher

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