Star Cement (540575) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 performance was subdued due to severe monsoon, election disruptions, and operational ramp-up, impacting demand and revenue, especially outside Northeast India.

• Northeast market share increased from 25% to 27% quarter-on-quarter, with volumes up 3% year-over-year.

• Commissioned new 3.3 MTPA clinker unit in Meghalaya in April 2024, producing 54KT in Q1 FY25.

• Launched new premium brand 'Star Dhalai Master' and achieved record premium sales at 9.1% of trade sales.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2024 were approved by the Board on 9th August 2024.

Financial highlights

• Q1 FY25 revenue was INR 736 crore (standalone) and ₹75,100.57 lakhs (consolidated), both slightly down year-over-year.

• EBITDA stood at INR 118 crore, down 15% year-over-year; EBITDA per ton was INR 1,018, down from INR 1,185.

• PAT dropped to INR 31 crore from INR 93 crore; consolidated net loss was ₹1,313.28 lakhs.

• One-time exceptional items, including clinker purchase (INR 28-32 crore), and higher depreciation from new plants impacted profitability.

• Trade share was 84%, premium sale 9.1%, and lead distance 207 km.

Outlook and guidance

• Full-year volume growth target revised to 15% due to weak Q1; management expects improvement as monsoon subsides.

• EBITDA per ton guidance maintained at INR 1,500 for FY25, driven by cost reductions and SGST benefits.

• Full financial impact of new plant incentives and SGST benefit from Assam to be realized from Q2 FY25, expected to add INR 300 per ton.

• Plans to increase green energy share to 55% by FY26 and achieve net zero carbon footprint by 2050.

• 12MW WHRS and AFR processing unit expected to reduce power costs from Q3 FY25.