Madras Cements reported 27.6% yoy growth in its net sales during
2Q (September) FY 2012, in-line with our estimates. Robust top-line growth was aided by
phenomenal 32.6% yoy growth in cement realization on a low base.
Southern Region..!
The Madras Cements is majorly present in the southern region, from where it derives more
than 90% of its revenue. Prices in this region had declined to extremely low
levels in 2Q FY 2011, as a result of which the company had the benefit of low
base during 2Q FY 2012.
However, dispatches fell by 9.3% yoy during the quarter, indicating the low demand scenario in the south. The company’s OPM rose by 15.55% yoy to 33.4%. The bottom line rose by 257.5% yoy to Rs. 111 cr.
We maintain our Neutral view on the stock.
Review By Angel Broking
2Q (September) FY 2012, in-line with our estimates. Robust top-line growth was aided by
phenomenal 32.6% yoy growth in cement realization on a low base.
Southern Region..!
The Madras Cements is majorly present in the southern region, from where it derives more
than 90% of its revenue. Prices in this region had declined to extremely low
levels in 2Q FY 2011, as a result of which the company had the benefit of low
base during 2Q FY 2012.
However, dispatches fell by 9.3% yoy during the quarter, indicating the low demand scenario in the south. The company’s OPM rose by 15.55% yoy to 33.4%. The bottom line rose by 257.5% yoy to Rs. 111 cr.
We maintain our Neutral view on the stock.
Review By Angel Broking
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