Star Cement (540575) Q4 18/19 earnings summary

Executive summary

• FY2018-19 consolidated revenue rose 12.4% to ₹1,836.52 crore; EBITDA fell to ₹454.63 crore and PAT attributable to owners declined to ₹298.78 crore, mainly following freight subsidy expiry.

• Cement sales grew 12.54% to 2.71 million tonnes, supported by higher volumes in stronger-realisation markets; the proposed Siliguri grinding unit would add 2 MTPA capacity.

Financial highlights

• Consolidated total income was ₹1,836.52 crore vs ₹1,633.49 crore in FY2017-18; PBT was ₹334.61 crore vs ₹352.59 crore, and PAT was ₹304.97 crore vs ₹336.18 crore.

• Consolidated EBITDA declined to ₹454.63 crore from ₹525.73 crore; EBITDA per tonne fell to ₹1,591 from ₹2,018, largely due to freight subsidy expiry.

• Consolidated EPS was ₹7.13 vs ₹7.89; standalone EPS improved to ₹6.10 from ₹5.03.

• Consolidated operating cash flow was ₹615.00 crore, while cash and cash equivalents were ₹94.91 crore at 31 March 2019.

Outlook and guidance

• Management targeted ~15% value and volume growth following capacity additions, with North East market share expected to remain at 23–24%.

• The 2 MTPA Siliguri grinding unit, with capex above ₹400 crore, was expected to commission in Q4 FY2019-20; expansion would support Bengal and Bihar demand.

• Plans included debottlenecking clinker capacity from 2.8 MTPA to 3 MTPA and building toward 7 MTPA cement capacity by 2024, funded primarily through cash accruals and subsidies.