Shree Cements Ltd. share price target

Shree Cement Ltd Q2FY19 results Comment Revenue decreased by 15.74% to Rs. 2586.59 Cr in Q2FY19 when compared to the previous quarter. On the other hand, it rose by 20.73% when compared with Q2FY18.

Shree Cement's Q2FY19 results were better than expectation with sales/EBITDA beat of 4.4%/7.2%. Sales grew 20.7% YoY to Rs25,866 mn driven by better than expected dispatches at 5.6 mn tonnes (+15.6% YoY). However, EBITDA/tonne fell 19.8% YoY to Rs922 mainly on higher energy costs and other expenditure. The company reported an exceptional loss of Rs1,781 mn related to investments in preference shares of IL&FS; after credit rating agencies downgraded IL&FS; Group to junk status. Excluding the reported exceptional loss, adjusted net profit increased 7.5% YoY to Rs2,275 mn. We largely maintain our FY19/20 estimates. We expect Shree Cement's EBITDA/ net...

Shree Cement (SRCM) has reported a healthy operating performance in 2QFY19 mainly on account of healthy realisation, stronger volume and improved performance of power division. Its EBITDA adjusted for Rs840mn MTM loss and Rs304mn freight rebate stood at Rs5.73bn exceeding our estimate of Rs4.83bn. Cement EBITDA/tonne came at Rs946 vs. Rs1,133 and Rs863 in 2QFY18 and 1QFY19, respectively. Cement operating cost/tonne stood at Rs3,268 vs. Rs3,037 and Rs3,244 in 2QFY18 and 1QFY19, respectively mainly due to higher fuel prices. Sales volume including clinker of 0.21mnT stood at 5.64mnT (+16% YoY and -19% QoQ). Average realisation grew unexpectedly by 3.9% QoQ to Rs4,268/tonne. SRCM has also provided Rs1.78bn total...

ICICI Securities Ltd | Retail Equity Research Shree Cement reported a mixed set of Q1FY19 numbers. Revenues increased 19.1% YoY to | 3,069.9 crore (vs. I-direct estimate of | 3,016.5 crore) mainly led by 15.6% YoY increase in cement revenues to | 2,869.5 crore. Further, power revenues increased from | 95.8 crore to | 200.5 crore in Q1FY19 The increase in cement revenues was due to 18.7% YoY increase in volumes to 7.0 MT (vs. I-direct estimate of 7.0 MT) partly offset by...

Revenue rose by 22.08% to Rs. 2811.08 Cr in Q4FY18 when compared to the previous quarter. Shree Cement Ltd Q4FY18 results Comment

ICICI Securities Ltd | Retail Equity Research Shree Cement's reported mixed set of Q4FY18 numbers. Revenues registered an increase of 15.3% YoY to | 2,811.1 crore (above I-direct estimate of | 2,741.5 crore) mainly led by 16.7% YoY increase in cement revenues to | 2,678.9 crore. However, power revenues...

Satisfactory Performance Despite Marred by Higher Freight Cost Shree Cement's (SCL) reported operational performance has come in below the expectation and is mainly marred by a substantial QoQ increase in freight cost/tonne (+6.6% QoQ). Reported EBITDA stood at Rs6.3bn (+12% YoY and +11% QoQ) as against our estimate of Rs6.7bn. Cement EBITDA/tonne came in at Rs958 as against Rs908 reported last year and Rs1,080 witnessed in previous quarter. Operating cost/tonne for cement stood at Rs3,200 (+8% YoY and +5% QoQ).Sales volume (including clinker) grew by 8.7% YoY and 21% QoQ to 6.44mnT, while power volume stood at 345 (-21% YoY and +26% QoQ). Net Profit grew by 31% YoY and 20% QoQ to...

Shree Cement's Q4FY18 result was ahead of our estimate, with EBITDA of Rs6.3bn against estimated Rs5.6bn, led by higher incentives (Rs1.1bn against Rs534mn/Rs600mn in Q4FY17/Q3FY18). EBITDA/tonne of Cement stood at Rs956. Sales volume of Cement grew by 8.7% yoy to 6.44mt. Realization grew by 7.4% yoy (5.5% yoy excluding incentives). EBITDA of Cement expanded by 14.4% yoy. EBITDA/tn stood at Rs956 against Rs908/Rs1,004 in Q4FY17/Q3FY18. Ex-incentives, EBITDA/tn...

Cement segment affected by higher power and freight costs; Power segment affected by lower volumes y-o-y: Performance of the cement division was affected by higher freight (+16.4% y-o-y on per tonne basis due to increased diesel prices) and power and fuel (+31% y-o-y on per tonne basis due to higher pet coke prices). Consequently, Shree Cement reported 5.3%...

Shree Cement (Shree) reported 18% YoY growth in cement revenues primarily on volume growth (+8.7% YoY) and realisation growth (+10.3% YoY). EBITDA grew at 17% and EBITDA/t grew at 18% aided by realisation growth and lower other expenses partially offset by power/fuel and freight cost escalations. Power revenues declined YoY on lower power unit sales. Shree during the quarter commissioned 3.6MTPA and 2MTPA grinding capacities in Sriganganagar, Rajasthan and Aurangabad, Bihar respectively. Additionally company acquired Union Cement Company (4MTPA) in UAE for a consideration of USD304mn (USD75/t). Sustainability of cement demand and realisation trend would be key monitorables...