Mangalam Cement, Top-Line Inline…but PAT disappoints :: IndiaNivesh

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Mangalam Cement (MCL) reported Q2FY15 top-line and EBITDA almost in-line
with our estimates. However, net profit for the quarter was well below our estimate
due to higher finance and depreciation costs. Led by higher despatches, MCL
reported net sales of Rs 2,396 mn (vs INSPL estimate of 2,498 mn), which is a
growth of ~62% y-o-y and 4% q-o-q. This large jump in sales is mainly on account
of new cement capacity of 1.25 mnt added in may-2014. Total cement capacity of
the company now stands at 3.25 mnt which is 62.5% higher than the cement
capacity at the beginning of previous quarter. This is the first full quarter in
operations for new added capacity. Decline in distribution and other expenses for
the quarter on y-o-y basis led to large jump in EBITDA by ~223% y-o-y to Rs 232
mn (vs INSPL estimate of Rs 243 mn). Adjusted net profit for the quarter stood at
Rs 46 mn (vs INSPL estimate of Rs 91 mn).

LINK
http://www.indianivesh.in/Admin/Upload/635501736566180000_Mangalam%20Cement%20Ltd._Q2FY15%20Result%20Update.pdf