Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Cement (ICEM) reported another quarter of robust performance
driven by higher realisation and controlled costs. The realisation/tonne
inched up by 1.5% QoQ to INR4,233 while the EBITDA/tonne at INR922,
adjusted to EBITDA from IPL and shipping business, remained impressive.
Despite a volume drop of 10.7% YoY (due to low demand in South),
cement revenue at INR10.3bn increased 30.1% YoY. The company
reported a PAT of INR697mn vs a loss of INR336mn for the same quarter
last year. We maintain ‘BUY’.
Realisations inch up 1.5% QoQ, growth guidance flat
With cement prices in the South region and in Maharashtra remaining firm, realisations
inched up further by 1.5% QoQ to INR4,233/tonne (See table 1 for revenue break-up).
Despite Q3 being a weak quarter (due to monsoons in Tamil Nadu), realisations are
expected to remain flat and move up further in Q4. While the volume for the quarter is
down 10.7% YoY due to low demand in the South (H1 volume down 11.6% YoY), the
management continues to guide for a flat YoY growth in FY12.
Impressive EBITDA/tonne, fuel cost to stay elevated
Power and fuel cost/tonne increased 4.9% QoQ to INR1,121 due to higher dependence
on imported coal (from 54% to 65%) to offset the shortage in domestic coal (as a result
of strike at Singhareni Coal Mines). Despite the output at Singhareni returning to
normalcy, the fuel cost is estimated to remain at elevated levels owing to the impact of
INR depreciation. The EBITDA/tonne at INR922, adjusted to EBITDA of IPL and shipping
business, continues to impress despite being low as compared to INR1,018 in Q1FY12.
Interest cost at INR895mn was higher QoQ by 53.7% due to INR244mn of forex
translation losses.
Outlook and valuations: Strong quarter; maintain ‘BUY’
Despite a rising cost scenario, we see no downside risk to our EBITDA/tonne
estimate of INR833 for FY12 (H1FY12 average at INR968). At CMP, the stock trades
at 5.8x FY12E and 5x FY13E EV/EBITDA. We maintain our ‘BUY/Sector
Outperformer’ recommendation/rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Cement (ICEM) reported another quarter of robust performance
driven by higher realisation and controlled costs. The realisation/tonne
inched up by 1.5% QoQ to INR4,233 while the EBITDA/tonne at INR922,
adjusted to EBITDA from IPL and shipping business, remained impressive.
Despite a volume drop of 10.7% YoY (due to low demand in South),
cement revenue at INR10.3bn increased 30.1% YoY. The company
reported a PAT of INR697mn vs a loss of INR336mn for the same quarter
last year. We maintain ‘BUY’.
Realisations inch up 1.5% QoQ, growth guidance flat
With cement prices in the South region and in Maharashtra remaining firm, realisations
inched up further by 1.5% QoQ to INR4,233/tonne (See table 1 for revenue break-up).
Despite Q3 being a weak quarter (due to monsoons in Tamil Nadu), realisations are
expected to remain flat and move up further in Q4. While the volume for the quarter is
down 10.7% YoY due to low demand in the South (H1 volume down 11.6% YoY), the
management continues to guide for a flat YoY growth in FY12.
Impressive EBITDA/tonne, fuel cost to stay elevated
Power and fuel cost/tonne increased 4.9% QoQ to INR1,121 due to higher dependence
on imported coal (from 54% to 65%) to offset the shortage in domestic coal (as a result
of strike at Singhareni Coal Mines). Despite the output at Singhareni returning to
normalcy, the fuel cost is estimated to remain at elevated levels owing to the impact of
INR depreciation. The EBITDA/tonne at INR922, adjusted to EBITDA of IPL and shipping
business, continues to impress despite being low as compared to INR1,018 in Q1FY12.
Interest cost at INR895mn was higher QoQ by 53.7% due to INR244mn of forex
translation losses.
Outlook and valuations: Strong quarter; maintain ‘BUY’
Despite a rising cost scenario, we see no downside risk to our EBITDA/tonne
estimate of INR833 for FY12 (H1FY12 average at INR968). At CMP, the stock trades
at 5.8x FY12E and 5x FY13E EV/EBITDA. We maintain our ‘BUY/Sector
Outperformer’ recommendation/rating on the stock.
No comments:
Post a Comment