Q1 FY23 Preview: Shree Cement: Revenue seen at Rs40,563 million; EBITDA at Rs8,084 million

27 Jul 2022 , 01:07 PM

Results date: 28th July
Recommendation: Reduce
Target Price: 19,300

Analysts at IIFL Capital Services forecast a y-o-y increase of 17.6% in the revenues of Shree Cement to Rs40,563 million in the June quarter. Realization per ton will be at Rs5,380. This will be a y-o-y increase of 6.7%. EBITDA is expected to stand at Rs8,084 million. This will be a y-o-y decline of 20.2%. The decline in EBITDA will be mainly because of higher input costs. Both power and fuel costs have risen for the company.

Key management insights to look into:

• Comments on further price increases, input cost inflation
• Demand trends across markets

	June 2022 estimates	Y-o-Y	Q-o-Q
Volume (m MT)	7.5	10.2%	(6.1)%
Realization (Rs/t)	5,380	6.7%	5.4%
Revenues (Rs mn)	40,563	17.6%	(1)%
EBITDA (Rs mn)	8,084	(20.2)%	(11.2)%
EBITDA (Rs/t)	1,072	(27.6)%	(5.5)%

Source: IIFL Research