Orient Cement Q1 Results Review Capacity Expansion Delayed; Downgrade To Sell: Axis Securities

Axis Securities Report

Orient Cement Ltd. reported a mixed set of numbers for Q1 FY25. Revenue and Ebitda declined by 16% and 3% YoY, respectively, falling below expectations. The company experienced a substantial decrease in volume, down by 15% YoY and 22% QoQ, totaling 1.36 million tonnes per annum.

Profit after tax stood at Rs 37 crore, largely flat YoY, as the company chose not to sell cement at unremunerative prices. Orient Cement reported an Ebitda margin of 13.8%, exceeding expectations of 12.5% and improving from 12% YoY. This positive performance was attributed to lower costs and stable realizations.

Ebitda per tonne was Rs 708, surpassing expectations and reflecting a 13% YoY increase. Realisation per tonne was Rs 5,135, remaining flat QoQ and down 1% YoY. The cost per tonne decreased by 3% YoY to Rs 4,427, driven by a 13% YoY reduction in power and fuel costs on a per-tonne basis.

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