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Star Cement Q3 Review - Volume Increase Restrict Ebitda Fall: Centrum Broking

Star Cement Q3 Review - Volume Increase Restrict Ebitda Fall: Centrum Broking

<div class="paragraphs"><p>Limestone rock used in the manufacture of cement passes along a conveyor belt (Photographer: Kevin Sutherland/Bloomberg)</p></div>
Limestone rock used in the manufacture of cement passes along a conveyor belt (Photographer: Kevin Sutherland/Bloomberg)

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.

Centrum Broking Report

Star Cement Ltd. reported lower-than-expected Ebitda of Rs 675 million (our estimate: Rs 870 million) due to lower-than-expected realisation and higher cost of operating.

Overall Ebitda fall was restricted (down 6% QoQ/20% YoY) due to higher volume (up 41% QoQ/23% YoY to 874 kilo tonne) which was due to ramp up of Siligurhi plant.

Overall operating cost, at Rs 5,576/tonne, was up 3% QoQ, which was due to higher raw material and freight cost. Ebitda/tonne, at Rs 772, was down 33% QoQ.

Star Cement has been trying to take price hikes to offset the cost increase and expect profitability to improve in subsequent quarter.

Click on the attachment to read the full report:

Centrum Star Cement - Q3FY22 Result Update.pdf

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