Star Cement (540575) Q4 14/15 earnings summary

Executive summary

• FY2014-15 consolidated cement production rose 31% to 2.17 million tonnes; cement sales rose 33% to 2.17 million tonnes, with capacity expansion and broader market reach supporting growth.

• Consolidated net sales reached ₹143,042.78 lakh, up 39%; EBITDA rose 85% to ₹43,723.31 lakh, and profit after minority interest was ₹11,865.39 lakh versus a ₹419.88 lakh loss.

Financial highlights

• Consolidated revenue from operations, net of excise duty, was ₹143,042.78 lakh versus ₹102,798.95 lakh; total revenue was ₹143,120.91 lakh versus ₹103,060.96 lakh.

• Consolidated PBT was ₹12,612.41 lakh versus a ₹479.26 lakh loss; profit after tax before minority interest was ₹12,132.28 lakh.

• Standalone net sales were ₹111,408.52 lakh versus ₹73,675.38 lakh; standalone profit after tax was ₹4,602.63 lakh versus a ₹1,569.38 lakh loss.

• Consolidated operating cash flow was ₹26,172.07 lakh, compared with ₹23,299.38 lakh in FY2013-14.

Outlook and guidance

• Cement demand was expected to grow by more than 8% over the next three years; industry utilisation was forecast to reach 75% in FY2016 and 79% in FY2017, versus 72% in FY2014.

• Plans focus on deeper penetration in North East India and expansion into additional Eastern states; management expected improved volumes in West Bengal, Bihar and adjoining Jharkhand.

• Ongoing infrastructure, roads, housing, ports and power projects, together with relatively low regional cement consumption, were cited as demand opportunities.