Star Cement Q1 Review - Second Consecutive Quarter Of Earnings Beat: Nirmal Bang
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Nirmal Bang Report
Star Cement Ltd. reported good numbers for Q1 FY23, primarily driven by controlled costs and better realisations. Despite heavy floods in Northeast during the quarter, the company was able to report 29% YoY growth in volume, driven by higher dispatches in the East and low base of past year.
Realisations remained strong in the East and operating costs were contained, leading to the company reporting strong Ebitda/million tonne of Rs 1,267.
Both Ebitda as well as Ebitda/million tonne were significantly ahead of our estimates, owing to controlled costs. The management has guided that the power and fuel costs are likely to remain rangebound as domestic coal prices have not changed much and the company is focusing on increasing the use of alternate fuel resources.
Star Cement also expects double-digit volume growth in both North-East as well as East regions, driven by higher government capex and low base of past year.
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