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Yes Securities Report
Orient Cement Ltd. reported a performance beat on all fronts as revenue/ Ebitda/adjusted profit after tax came at Rs 8.8/1.4/0.67 billion (beat our estimate: by +5/22/46%). This performance was largely driven by volume and net sales realisation growth of +6% & 3% YoY owing to good demand from the business-to-business segment.
Ebitda/tonne came at Rs 812 remained muted by 14% YoY in Q4 FY23.
Orient Cement deferred its announced expansion of three million tonnes per annum (two mtpa in Tiroda and one mtpa in Devapur).
As a result, we trimmed our revenue/Ebitda and profit after tax estimate by 5/15/36% for FY24 and 5/5/36% for 25E. Now management prioritises the Chittapur expansion (3 mtpa cement and 2 mtpa clinker) to improve the production headroom as the unit has only 1klin running on 100% utilization.
Orient Cement plans to commission grinding unitin central India (MP) instead of Tiroda GU (two mtpa). Further plans to add three mtpa clinker and one mtpa GU at Devapur to cater the GU in MP.
Management reiterates its policy to focus on better pricing over higher dispatches to offset cost inflation and improve the margins.
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