Star Cement (540575) Q4 13/14 earnings summary

Executive summary

• FY2013-14 consolidated revenue rose 73% to ₹102,798.95 lakh and EBITDA rose 96% to ₹23,650.50 lakh; consolidated net loss after minority interest was ₹419.88 lakh.

• New Guwahati grinding and Lumshnong clinker units ramped up during their first full year, driving volume growth and expansion into West Bengal and Bihar.

Financial highlights

• Consolidated net sales were ₹102,798.95 lakh versus ₹59,497.13 lakh YoY; EBITDA was ₹23,650.50 lakh versus ₹12,047.69 lakh.

• Consolidated PBT was a loss of ₹479.26 lakh versus profit of ₹4,897.67 lakh; net loss after minority interest was ₹419.88 lakh versus profit of ₹4,290.92 lakh.

• Consolidated cement production grew 56% to 1,664,037 MT; cement sales rose 53% to 1,631,048 MT and clinker production grew 65% to 1,378,616 MT.

• Cash profit rose 60% to ₹15,480.47 lakh; average net sales realization increased 3% YoY.

Outlook and guidance

• Expected larger clinker and cement volumes in FY2014-15 as new units stabilize and capacity utilization improves; Guwahati was projected to generate ₹590 crore at full-year, full-capacity utilization.

• Better realizations were expected in FY2014-15; management planned progressive investment toward 10 MTPA capacity by 2020.

• A West Bengal grinding facility was planned by 2017; cement exports to Nepal, Bhutan and Bangladesh were under exploration, alongside ongoing clinker exports.

• Management expected Indian cement demand growth of 5–6% in the next fiscal, supported by infrastructure and housing investment; North-East demand growth was expected to firm up.