Star Cement (540575) Q4 20/21 earnings summary

Executive summary

• FY21 performance remained resilient despite COVID-19 disruptions and a bridge collapse that constrained logistics; revenue was maintained near the prior year’s level, while year-end targets were missed.

• Siliguri’s new grinding unit added 2 MTPA, taking total cement capacity to 5.7 MTPA and strengthening coverage in West Bengal and Bihar.

Financial highlights

• Consolidated FY20-21 revenue was ₹1,720 crore, down 6.7% YoY; EBITDA was ₹361 crore with a 20.98% margin, and profit was ₹187 crore with a 10.88% margin.

• Consolidated PBT was ₹199.26 crore versus ₹321.52 crore in FY19-20; FY21 included a ₹64.57 crore exceptional excise-duty reversal.

• Consolidated cement production was 2.64 MMT and sales volume was 2.644 MMT; production was down from 2.89 MMT in FY19-20.

Outlook and guidance

• The outlook cited infrastructure spending, housing needs, urbanisation and vaccination-led recovery as cement demand drivers; rating agencies expected cement production growth of 4%-7% in FY21-22.

• Capacity ambition is 10 MMT by 2026, with further capacity additions planned to address demand and extend the Eastern India footprint.