Star Cement (540575) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue from operations reached ₹2,221.82 crore; PAT was ₹246.77 crore, with stronger demand and infrastructure activity lifting volumes late in the year.

• Cement sales volume rose to 3.4 MMT from 2.64 MMT; the North-East market remained the core region, with 25.45 lakh tonnes sold there.

• Financial strength remained solid, with net debt-free status highlighted and a planned expansion programme spanning clinker, grinding and waste-heat recovery capacity.

Financial highlights

• Consolidated revenue from operations was ₹2,221.82 crore vs ₹1,719.93 crore in FY21; total income was ₹2,255.19 crore vs ₹1,748.15 crore.

• Consolidated EBITDA before exceptional items was ₹378.62 crore vs ₹360.82 crore; PBT was ₹243.65 crore vs ₹199.26 crore.

• Consolidated PAT was ₹246.77 crore vs ₹187.13 crore; EPS rose to ₹6.04 from ₹4.54.

• Cement production increased to 34.06 lakh tonnes from 26.36 lakh tonnes; clinker production reached 21.75 lakh tonnes vs 19.11 lakh tonnes.

Outlook and guidance

• FY23 cement sales volume target: 4 MMT, compared with FY22 sales of 3.4 MMT.

• FY23 capex plan was ~₹300 crore; a 12 MW WHRB plant at Meghalaya was expected to begin operations by September 2022.

• Expansion plans included a 3 MTPA clinker unit in Meghalaya and two 2 MTPA grinding units in Assam; capex of ₹2,200–2,500 crore was planned over 24 months.

• Long-term capacity ambition: 15 MMT by 2026.