Shree Cement Q3 FY22 Preview: Revenue seen at Rs32,172 million, Ebitda at Rs8,030 million

1 Feb 2022 , 09:34 AM

Result date: 1st February, 2022

Recommendation: REDUCE

Target price: Rs28,200

(Source: IIFL Research)

Shree Cement could report highest volume decline of ~10% YoY due to significantly low demand in eastern markets and construction ban in Delhi-NCR. Revenue could decline 2.8% YoY and will be largely supported by growth in realisations.

Ebitda/t is likely to drop due to significant price correction in the East as well as the input cost pressure.

Important management insights to watch out for:

* Demand trends in key markets

 * Margin drivers in the future

	December 2021 estimates	QoQ change	YoY change
Volumes (m MT)	6.4	2.1%	(10.0%)
Revenue (Rs. mn)	32,172	0.4%	(2.8%)
Ebitda (Rs. mn)	8,030	(10.6%)	(26.3%)
Ebitda (Rs/t)	1,246	(12.4%)	(18.1%)
Realization (Rs/t)	4,990	(1.7%)	(8.0%)

Source: IIFL Research, Company