Cement Q2 Results Review – Robust Volume Growth; Easing Cost Pressure Drives Ebitda Growth: Axis Securities

Axis Securities Report

The companies under our coverage reported volume /revenue / Ebitda /adjusted profit after tax growth of 14%/13%/73%/162% YoY against expectation of 13%/12%/75%/165%.

Ebitda margins improved by 560 basis points YoY. Ebitda/tonne for the quarter stood at Rs 852, up 60% YoY.

Realisation/tonne was flattish at Rs 5,552 both YoY/QoQ. Cost/tonne stood at Rs 4,701, down 7% YoY and flattish QoQ.

Company-wise, the performance of Ambuja Cement Ltd., Shree Cement Ltd., JK Cement Ltd., JK Lakshmi Cement Ltd., Orient Cement Ltd., and Star Cement Ltd. were above expectations. UltraTech Cement Ltd. delivered in line performance while ACC Ltd., Dalmia Bharat Ltd., Heidelberg Cement India Ltd. and Birla Corporation Ltd. delivered underperformance.

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