Orient Cement (ORIENTCEM) Q1 24/25 earnings summary

Executive summary

• Achieved Great Place to Work certification for the fifth consecutive year, with a trust score of 93, ranking in the top 50 across all sectors and number one in building products and cement.

• Unaudited financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on August 5, 2024.

• Q1 FY25 saw a 15% year-over-year volume de-growth due to weak demand, heatwaves, heavy monsoons, and election-related disruptions, especially in Telangana, Karnataka, and Maharashtra.

• Maintained price realization and profitability despite industry-wide price declines, prioritizing margin over volume.

• Premium cement sales reached 23% of total volumes, nearing the 25% target.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹69,626.81 lakhs, down from ₹88,802.81 lakhs in the previous quarter and ₹82,517.73 lakhs year-over-year.

• Net profit for Q1 FY25 was ₹3,671.06 lakhs, compared to ₹6,819.98 lakhs in the previous quarter and ₹3,703.36 lakhs year-over-year.

• Q1 cement volumes were 13.56 lakh tons, down 15% year-over-year and 21% sequentially.

• EBITDA per ton improved from 650 to 750 year-over-year.

• Power and fuel costs dropped to INR 1,337/ton from INR 1,571/ton year-over-year.

Outlook and guidance

• No specific volume growth guidance for FY25; earlier 8% target withdrawn due to Q1 decline and ongoing weak demand.

• Management expects demand to pick up post-monsoon, driven by pent-up construction and repair needs.

• CapEx for FY25 expected at INR 200–300 crore, with major outflows deferred to next year pending clearances.

• Results are available on company and stock exchange websites, indicating transparency and regulatory compliance.