Cement Sector Q4 Results Review - Volumes Shall Continue To Drive FY23-25E Earnings Recovery: Dolat Capital

Dolat Capital Report

Our universe (13 stocks) reported revenue of Rs 510.6 billion in Q4 FY23, +15.2% YoY (+16.1% QoQ) led by +11.4% YoY in volume to 90.8 million tonne (+16.8% QoQ) coupled with +3.4% YoY (-0.6% QoQ) in blended realisation/tn to Rs 5,624.

Ebitda +0.1% YoY/ +34.4% QoQ to Rs 81.0 billion and blended Ebitda/tonne -10.1% YoY/ +15.1% QoQ to Rs 893 led by +6.5% YoY/ -3.1% QOQ in blended cost/tonne to Rs 4,731 which was partially offset by +3.4% YoY/ -0.6 QoQ in blended realisation to Rs 5,624. Accordingly, adjusted profit after tax witnessed de-growth of 4.9% YoY to Rs 37.7 billion (+67.5% QoQ) in Q4 FY23.

On YoY basis, all companies reported revenue growth in Q4 FY23 (except Heidelberg Cement India Ltd. and Nuvoco Vista Corporation Ltd.) with The Ramco Cements Ltd. reporting highest growth of 50.3% and Heidelberg Cement lowest growth of -2.9%.

All companies (except Heidelberg Cement and Nuvoco Vista) reported growth with Ramco Cements highest (+45.5%) and Nuvoco Vista lowest (-5.3%).

All companies reported growth with JK Lakshmi Cement Ltd. highest (+13.1%) and Ambuja Cement Ltd. lowest (+0.2%). Ebitda/tonne – all companies reported de-growth (except Star Cement Ltd.) with Sagar Cements Ltd. witnessing highest (-47.1%) and Stat Cement lowest (+36.8%).

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