India Cements Ltd's Q1FY19 standalone net profit declines 20.7% yoy to Rs21cr : Beats Estimates

The company’s standalone revenue stood at Rs1,360.7cr, down 6.9% yoy and 2.7% qoq.

Aug 12, 2018 07:08 IST India Infoline Research Team

India Cements Ltd Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 1,360.7 [6.9]
EBITDA 156 [15.9]
EBITDA Margin (%) 11.5 [123]
Net Profit (adjusted) 21 [20.7]
***EBITDA margin change is bps
India Cements reported weak set of numbers for Q1FY19, however, it was above the consensus estimates. Revenue for the quarter declined by 6.9% yoy to Rs1,360.7cr, broadly in-line with the consensus estimates. However, the operating performance was disappointing, as EBITDA declined by 15.9% yoy to Rs156cr (~10% higher than estimates) on account of higher cost structure. EBITDA margin contracted by 123bps yoy to 11.5%. PAT also reported decline of 20.7% yoy to Rs21cr, ahead of estimate of Rs7cr.
  • The revenue and other expenses are not directly comparable on yoy basis because of treatment of excise duty pre and post GST implementation.
  • Company reported 15.8% yoy jump in cement volumes to 3.1MT, in-line with estimates.
  • Company indicated that the steep drop in net plant realisation (NPR) by ~9% yoy led to ~Rs104cr of impact on the bottom.
  • Raw material, power and freight costs were up by 163bps, 987bps, 416bps yoy as percent of net sales respectively. Higher petcoke and diesel prices led to the increase in power and freight costs respectively. 
  • Interest cost for the quarter was down by 16.1% yoy to Rs73.3cr as company made a higher repayment at Rs73cr against Rs87cr.
  • Tax for the quarter stood at 21.3% against 34.6% in Q1FY18. 
  • Company expects the cement demand momentum to continue supported by infrastructure activities and government focus on public spending ahead of general election next year. 

Technical View:

India Cements Ltd ended at Rs. 116.95, down by 2.7 points or 2.26% from its previous closing of Rs. 119.65 on the BSE.
The scrip opened at Rs. 118.65 and touched a high and low of Rs. 120.25 and Rs. 115.20 respectively. A total of 37,03,773 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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