Star Cement (540575) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 clinker production was 6.58 lakh tons and cement production 9.55 lakh tons, with cement sales at 9.62 lakh tons; North-East sales grew 11% YoY, while outside North-East sales declined 5% YoY.

• Achieved preferred bidder status for 6 limestone blocks in Rajasthan with 63.9Mn tons of resources over 95.68 hectares.

• Premium product sales reached 10.6% of trade sales, with trade sales mix at 85% and lead distance increased to 218 km.

• Inducted 120 new trucks to enhance logistics efficiency.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board on November 8, 2024.

Financial highlights

• Q2 FY25 revenue was INR 642 crore (up from INR 585 crore YoY), with cement and clinker sales volume at 9.77 lakh tons.

• EBITDA declined to INR 96 crore (from INR 104 crore YoY), with per tonne EBITDA at INR 995 (down from INR 1,164 YoY); PAT dropped to INR 6 crore (from INR 41 crore YoY).

• Half-year revenue was INR 1,393 crore (up from INR 1,346 crore YoY); H1 EBITDA was INR 215 crore (down from INR 242 crore YoY); PAT was INR 37 crore (down from INR 134 crore YoY).

• Gross cash accruals improved 15% YoY to ₹88 Cr.

• Consolidated Q2 FY25 revenue was ₹47,174.58 lakhs, with consolidated PAT at ₹3,673.20 lakhs.

Outlook and guidance

• Capacity utilization expected at 70% in Q3 and 85–90% in Q4, with FY26 average at 75%.

• Q4 EBITDA expected at INR 220–230 crore, with profitability to improve as new clinker plant stabilizes.

• Planned cement capacity to reach 12 MTPA by FY27, with ongoing greenfield projects and two new grinding units in Assam.

• 12MW WHRS and AFR processing unit to be commissioned in Q3 FY25; group captive PPA of 18MW with JSW Green Energy to be fully operational by FY26.

• Volume growth guidance for H2 FY25 is 10–11%, with focus on Northeast markets.