Star Cement (540575) Q4 16/17 earnings summary

Executive summary

• FY2016-17 held up despite demonetisation and a weak cement market; leadership in North Eastern India was maintained, while sales expanded in West Bengal and Bihar.

• Consolidated PAT rose to ₹171.63 crore from ₹134.04 crore; EBITDA was ₹410.97 crore, with margin reported at 23.78%.

Financial highlights

• Consolidated net revenue was ₹1,728.00 crore versus ₹1,715.03 crore in FY2015-16; gross revenue was ₹1,752.04 crore.

• Consolidated EBITDA was ₹410.97 crore versus ₹400.69 crore; PBT was ₹191.80 crore versus ₹145.30 crore.

• Consolidated PAT was ₹171.63 crore versus ₹134.04 crore; EPS was ₹4.09 versus ₹3.20.

• Operating cash flow reached ₹306.96 crore, compared with ₹97.03 crore in FY2015-16; investing cash outflow was ₹90.28 crore.

Outlook and guidance

• Management expected further operational improvement in FY2017-18, with cement capacity augmentation through de-bottlenecking aimed at lower costs.

• Market presence was to deepen tehsil- and panchayat-wise; management viewed operating leverage and brand strength as supports for growth, calling FY2017-18 a potential watershed year.

• Capacity was expected to support 10-15% growth over the next two years; this was a stated outlook, not a reported result.