Star Cement Q3 net profit fall sharply on exceptional write-offs

Star Cement reported -6.14% lower total sales revenues for the Dec-20 quarter on consolidated basis at Rs423.44cr

Feb 08, 2021 06:02 IST India Infoline News Service

Cement
Star Cement reported -6.14% lower total sales revenues for the Dec-20 quarter on consolidated basis at Rs423.44cr. For the Dec-20 quarter, the much smaller power segment showed growth in revenues of 35%. However, the larger cement business saw demand and revenues taper by over 6% pulling total revenues lower.


The consolidated Profit after tax (PAT) for the Dec-20 quarter was down 99% at Rs0.08cr on the back of a massive exceptional write-off. The company had booked Rs64.57cr as differential exercise in a legal case in the previous financial year. However, after a few similar judgements recently were unfavourable, the company has written off the entire sum of Rs64.57cr as an exceptional loss in this quarter. It has also been shown as contingent liability in the annual report. Hence comparisons may not be reflective.


Financial highlights for Dec-20 compared yoy and sequentially


Star Cements Ltd
Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 423.44 ₹ 451.16 -6.14% ₹ 401.90 5.36%
Net Profit (Rs cr) ₹ 0.08 ₹ 71.23 -99.89% ₹ 61.47 -99.87%
Diluted EPS (Rs) ₹ -0.04 ₹ 1.71 ₹ 1.46
Net Margins 0.02% 15.79% 15.29%

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