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Advice: Scale back
Goal value: Rs25,000
Shree Cement’s volumes might decline within the March 2022 quarter as in comparison with the year-ago quarter owing to the upper base again then. Sequentially although, volumes might develop by ~22%. Progress in realizations might drive 4% improve in income versus the year-ago quarter.
Rising costs of key inputs, particularly, petcoke and imported coal might result in a pointy improve of 27% in price of manufacturing as in comparison with the year-ago quarter. This, together with larger working price might have a bearing on the corporate’s gross margin. Value hikes of about 2% although might arrest the decline in EBITDA to 16.4% on a year-on-year foundation. EBITDA per ton might additionally decline, in sync with escalating prices.
Essential administration insights to be careful for:
· Demand traits throughout key markets
· Outlook on enter prices, value hikes and margins
|
March 2022 estimates |
YoY change |
QoQ change |
|
|
Volumes (m MT) |
8.0 |
(3)% |
21.6% |
|
Realization (Rs/t) |
5,129 |
7.2% |
(5.4)% |
|
Income (Rs mn) |
40,867 |
4.0% |
15.1% |
|
EBITDA (Rs mn) |
9,836 |
(16.4)% |
19.1% |
|
Ebitda (Rs/t) |
1,234 |
(13.9)% |
(2.0)% |
Supply: IIFL Analysis
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