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Entry Price

85.00

Target

95.00

Recommend Date

13-08-2019

Return

11.76 %
BUY

Date : 13-08-2019

On a broad view, India Cements reported a positive set of Q1FY20 numbers with sales and profitability beating our estimates. Revenues for the quarter increased ~8% YoY to | 1468.8 crore (above I-direct estimate of | 1325 crore) on the back of strong growth in realisations while volumes declined marginally. Volumes for the quarter were at 3.04 MT (above I-direct estimate of 2.8 MT). Blended realisations showcased a strong increase by 9.2% YoY to | 4832/t. EBITDA margins expanded 500 bps YoY to 16.5% YoY while EBITDA/t increased 57% YoY to | 796/t on the back of a strong improvement in realisations owing to price hikes taken in the previous and this quarter. EBITDA increased 55% YoY to | 242 crore (vs. I-direct estimate of | 180 crore) and PAT increased 240% YoY to | 72.2 crore (vs. I-direct estimate of | 32.8 crore) on the back of strong profitability during the quarter.