Star Cement (540575) Q3 24/25 earnings summary

Executive summary

• Cement and clinker sales volume grew 10% year-over-year in Q3 FY25, reaching 10.68 lakh tons, with Northeast sales up and outside Northeast slightly down.

• Revenue for Q3 FY25 was ₹719 crore, up from ₹651 crore year-over-year; nine-month revenue reached ₹2,111 crore.

• EBITDA declined 30% year-over-year to ₹107 crore, with per ton EBITDA dropping 36% to ₹1,000-1,007.

• Profit after tax fell sharply by 87% year-over-year to ₹9 crore.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on January 30, 2025.

Financial highlights

• Q3 FY25 EBITDA was ₹107 crore (vs. ₹153 crore YoY); PAT was ₹9 crore (vs. ₹74 crore YoY).

• EBITDA per ton dropped to ₹1,000 from ₹1,576 YoY.

• For nine months, EBITDA was ₹321 crore (vs. ₹395 crore YoY); PAT was ₹46 crore (vs. ₹207 crore YoY).

• Standalone revenue from operations for Q3 FY25 was ₹45,115.99 lakhs, up from ₹40,273.71 lakhs in the previous quarter.

• Standalone net profit for Q3 FY25 was a loss of ₹4,430.85 lakhs, while consolidated net profit was ₹905.95 lakhs.

Outlook and guidance

• Expecting 7-8% volume growth for FY25 and 10% in Q4; projecting 12-15% growth for FY26.

• EBITDA for FY25 projected at ₹225-230 crore, with Q4 expected to be stronger as one-off costs subside.

• Expansion plans to increase cement capacity to 12 MTPA by FY27, with new grinding units and AAC block plant.

• 12 MW WHRS and AFR processing unit to be commissioned in Q4 FY25 to optimize power costs.

• SCNEL subsidiary commenced cement production at its Guwahati grinding unit and opted for a lower income tax rate.