Cement Q1 Earnings Review - Cost Pressure, Insufficient Price Hike To Hurt Ebitda/Tonne In Q2: Dolat Capital

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Freshly mixed cement mix lying in a tub at construction site. (Source: freepik)

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Dolat Capital Report

Our coverage universe of 13 stocks reported revenue of Rs 433.9 billion in Q1 FY23, a growth of 25.0% YoY (down 1.9% QoQ) led volume growth of 16.6% YoY (down 7.1% QoQ) to 75.5 million tonne coupled with blended realisation/tonne growth of 7.2% YoY (up 5.5% QoQ) to Rs 5,750.

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Ebitda declined sharply by 17.7% YoY (down 7.7% QoQ) to Rs 74.7 billion and blended Ebitda/tonne decreased by 29.4% YoY (down 0.7% QoQ) to Rs 990 due to 20.1% YoY increase in blended cost/tonne to Rs 4,760 (up 6.9% QoQ), which was partially offset by blended realisation growth of 7.2% YoY (up 5.5% QoQ) to Rs 5,750.

Accordingly, adjusted profit after tax witnessed sharp de-growth of 22.5% YoY (down 4.6% QoQ) to Rs 37.9 billion in Q1 FY23.

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