Star Cement (540575) Q4 11/12 earnings summary

Executive summary

• Consolidated net sales rose 15.22% to ₹56,495.95 lakh, while EBITDA declined 3.95% and PAT fell to ₹8,982.47 lakh from ₹12,062.04 lakh.

• Cement production increased 14.53% to 1,103,800 MT and sales volume rose 13.96% to 1,106,422 MT; North-East market share reached 18.7%.

• Expansion at Lumshnong and Guwahati was progressing toward FY2012-13 commercial start-up, backed by rising regional demand and a persistent supply gap.

Financial highlights

• Consolidated net sales were ₹56,495.95 lakh versus ₹49,032.56 lakh; consolidated EBITDA was ₹14,548.29 lakh, down 3.95%.

• Consolidated PBT declined to ₹9,097.31 lakh from ₹11,730.58 lakh; PAT after minority interest was ₹8,982.47 lakh versus ₹12,062.04 lakh.

• Consolidated exceptional items were a ₹741.73 lakh charge, versus ₹168.17 lakh income in FY2010-11.

• Standalone net sales were ₹33,746.69 lakh versus ₹32,556.21 lakh; standalone PAT fell to ₹4,047.56 lakh from ₹8,345.83 lakh.

Outlook and guidance

• Both the 1.75 MTPA Lumshnong clinker unit and 1.60 MTPA Guwahati grinding unit were expected to begin commercial production in FY2012-13.

• Cement demand was expected to grow 8% in FY2012-13; the national outlook cited GDP growth of 7.5%-8% and increased infrastructure and low-cost housing spending.

• Planned energy measures included additional VFDs, crusher upgrades, improved kiln sealing and ISO 50001 energy-management implementation.