Orient Cement Q3 Results Review - Capex To Drive Into New League: Yes Securities

Yes Securities Report

Orient Cement Ltd.'s reported revenue/Ebitda/adjusted. Profit after tax missed our estimate by 8/7/16% over muted volume during the quarter. The company saw a volume de-growth of plus 3% YoY, which was mitigated by net sales realisation improvement of plus 5% YoY and translated in a revenue growth of 3% YoY in Q3 FY24.

Surge in raw material cost/tonne by 23% YoY led total cost/tonne up by 2% YoY during the quarter. With the healthy NSR and flat cost, the Ebitda improved to Rs 829/tonne in Q3 FY24 against Rs 632 in Q2 FY23. Ebitda/profit after tax grew by plus 28/64% YoY to Rs 1,154 million and Rs 450 million in Q3 FY24, respectively.

Management reiterates its priority to increase Chittapur capacity (3 millions of tonnes per annum cement and 2 mtpa clinker) to improve the production headroom as the unit has only one kiln running at 100% utilization.

Moreover, the company plans to add 3 mtpa clinker and 1 mtpa grinding unit at Devapur to cater the 2 mtpa of GU in Madhya Pradesh commissioning by FY26E.

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