India Cements Q1 Results Review - Operating Losses Continue In The Cement Segment: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.India Cements Ltd. reported yet another disappointing quarter as its Ebitda dipped 84% YoY to Rs 50 million (versus estimated Rs 362 million). On the other hand, operating loss stood at Rs 91 million in its cement division (versus an Ebitda of Rs 263 million in Q1 FY23; reported losses for the last four quarters). India Cements' net loss stood at Rs 753 million (versus our estimate of Rs 538 million net loss) during the quarter. India Cements has engaged Boston Consulting Group, which would suggest measures to improve operational efficiency (to help cost reduction to the tune of Rs 200/tonne by March-24E) at its three plants in Andhra Pradesh. India Cements has also engaged with equipment experts to refurbish and modernise a few plants to bring efficiency into operations. Its estimated capex for FY24 is Rs 3.5 billion. It also plans to monetise a land parcel of ~Rs 1 billion in Q2 FY24. We cut our FY24E earnings (Ebitda cut ~40%) considering lower-than expected cost savings in H1 FY24, while we maintain our FY25 estimates. We reiterate 'Sell' with a target price of Rs 150 (premised on 10.5 times FY25E enterprise value/Ebitda)..Click on the attachment to read the full report:.Ramco Cements Q1 Results Review - High Net Debt Remains A Concern; Maintain 'Sell': Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Cements Q1 Results Review - Operating Losses Continue In The Cement Segment: Motilal Oswal

Hired consultant to drive variable cost savings of Rs 200/tonne by March-24E

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