Q2FY11 Preview India Cements by Centrum,

Visit http://indiaer.blogspot.com/ for complete details 􀂄 􀂄


India Cements (Rating – Sell; Target Price – Rs110)
􀂁 We expect Q2FY11 sales to de-grow 21.5% YoY to Rs7, 809mn. EBIDTA is expected to de-grow
95.7% YoY to Rs130mn, while the company is expected to post a PAT loss of Rs496mn, as
against a profit of Rs1,377mn.
􀂁 Sales are expected to be driven by the 5.6% YoY decline in volume to 2.66mt and 24.2% YoY degrowth
in realization to Rs2,723/tonne.We have assumed IPL revenue of Rs500mn, freight
revenue of 110 mn and wind power sale of Rs25mn. We expect EBIDTA margin to contract 28.8
pps YoY (9.7 pps QoQ) at 1.7 %.