India Cement Results: Mr. V. Srinivasan, Research Analyst, Angel Broking View


Views of  Mr. V. Srinivasan (Research Analyst, Angel Broking) on India Cement 1Q FY 2013 Results :
“India Cements posted a 13.2 % y o y growth in its standalone topline to Rs.1,201 cr, which was slightly above our estimates. The topline growth is expected to have been driven primarily by higher realization. Cement prices remained high on a y o y basis in the company’s primary markets situated in South India aided to an extent by the improving demand situation in the region, resulting in better realization. OPM stood at 23.1% up 0.28% on a y o y basis, aided by better realization.
However, the margin improvement was to an extent restricted due to increase in freight costs due to higher diesel cost and fare hike by railways. Net profit fell by 39 % y o y to Rs. 62 cr. During the quarter the company had Rs. 20 cr of exceptional items related to the IPL franchisee and Rs. 25cr of forex loss which along with higher depreciation dragged the profits down. We maintain a neutral view on the stock.”

Corporate Communications Team
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