Star Cement (540575) Q4 12/13 earnings summary

Executive summary

• FY2012-13 consolidated revenue rose to ₹59,497.13 lakh from ₹56,495.95 lakh, while EBITDA fell 20.25% to ₹12,047.69 lakh and PAT fell to ₹4,290.92 lakh from ₹8,982.47 lakh.

• Cement sales were 10,65,097 MT, down less than 4% YoY; the brand retained its leadership position in the North-East, with market share stated at over 20%.

Financial highlights

• Consolidated PBT was ₹4,897.67 lakh versus ₹9,097.31 lakh; PAT after minority interest was ₹4,290.92 lakh versus ₹8,982.47 lakh.

• Consolidated net revenue was ₹59,497.13 lakh versus ₹56,495.95 lakh; average net sales realization increased 15% YoY.

• Standalone net revenue reached ₹36,127.07 lakh versus ₹33,746.69 lakh; standalone PAT was ₹3,068.55 lakh versus ₹4,047.56 lakh.

• Consolidated cement production was 10,67,465 MT versus 11,03,800 MT; clinker production rose 16.90% to 835,576 MT.

Outlook and guidance

• New Guwahati grinding and subsidiary clinker units began commercial operations in late January 2013; their full operating impact was expected in the following year.

• Market entry into Bihar and West Bengal was planned following commissioning of the Guwahati grinding unit; expansion of logistics and stock points supported the move.

• Regional cement demand was expected to benefit from housing, roads, rail links, hydropower and other infrastructure projects; management anticipated demand growth exceeding the national rate.