Orient Cement Q2 Results Review - Capacity Expansion Delayed: Axis Securities
The proposed expansion plan at the Devapur facility was scheduled to be operational by the FY24 end but now stands further delayed
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Axis Securities Report
Orient Cement Ltd. reported flattish revenue growth YoY (below expectation) in Q1 FY23 while reporting volume/Ebitda/adjusted profit degrowthof 3%/74%/117% YoY (below expectation). This was primarily on account of escalated input costs during the quarter.
Orient Cement reported a volume of 1.24 million tonnes per annum, down 3% YoY as heavy monsoon and lower demand impacted the cement sale in its operating regions. It reported a blended realisation of Rs 4,978/tonne (Rs 4,798/tonne)in Q2 FY22), posting realisation growth of 4% YoY.
The realisation was down 4% QoQ owing to seasonality impacting cement offtake.
The company reported Ebitda margins of 5.3% (22% Q2 FY22),down 16800 bps as power/fuel and raw material costs shot up by 44%/49%YoY on a per tonne basis. The Ebitda/tonne of Rs 263 was lower by 74% YoY and 65% QoQ owing to elevated costs.
Cost/tonne during the quarter stood 26% higher YoY at Rs 4,715/tonne. The company reported an adjusted profit after tax of Rs 9 crore, down 117% YoY.
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