Star Cement (540575) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue from operations reached ₹2,705 crore; EBITDA before exceptional items was ₹520 crore and PAT was ₹248 crore. Cement production and sales volumes expanded, with major capacity projects underway.

• Performance benefited from higher volumes and cost-control initiatives amid inflationary pressure, while investment in capacity, logistics and energy efficiency supports planned regional expansion.

Financial highlights

• Consolidated revenue from operations was ₹2,704.85 crore vs ₹2,221.82 crore in FY22; total income was ₹2,756.93 crore vs ₹2,255.19 crore.

• Consolidated EBITDA before exceptional items was ₹520.47 crore vs ₹378.62 crore; PBT was ₹379.67 crore vs ₹243.65 crore.

• Consolidated PAT was ₹247.60 crore vs ₹246.77 crore; EPS rose to ₹6.13 from ₹6.04.

• Standalone revenue from operations was ₹2,704.53 crore; standalone PAT was ₹164.02 crore vs ₹176.32 crore, with EPS of ₹4.06 vs ₹4.32.

• Consolidated operating cash flow was ₹375.23 crore; investing cash outflow was ₹271.69 crore, primarily reflecting ₹571.86 crore of property, plant and equipment and CWIP purchases.

Outlook and guidance

• Targeting volume growth of 12%-15% while maintaining profitability; near-term focus remains the North East, followed by expansion into markets beyond the region.

• Planned capex of ₹2,200-2,300 crore over 2-3 years for a 3 MTPA clinker unit at Lumshnong and 2 MTPA grinding units each at Guwahati and Silchar.

• Lumshnong clinker and Guwahati grinding capacity were expected to commercialise in FY24; Silchar grinding unit was expected by FY25.

• New brands aimed at increasing trade share and premium-product demand were planned by Q2 FY24; acquisitions of mines or smaller plants remained under evaluation.