Orient Cement Q3 Results Review - Result Below Expectations; Retain Hold: Axis Securities

Axis Securities Report

Orient Cement Ltd. reported numbers that were below our and consensus estimates. Its revenue/Ebitda/profit after tax grew by 3%/28%/64% YoY (below expectations).

The company reported de-growth in volume by 3%/2% YoY/QoQ at 1.39 mtpa and was impacted by a shortage of labour, State elections, and unseasonal rain. It reported a PAT of Rs 45 crore against Rs 28 crore last year on the back of higher realization YoY.

Orient Cement recorded an Ebitda margin of 15.4% (versus expectations of 15.8%) against 12.3% YoY.

Orient Cement’s Ebitda/tonne stood at Rs 830 (in line with expectations), up 31% YoY, and it reported realization/tonne of Rs 5,397 against Rs 5,121, up 5%/7% YoY/QoQ.

The company’s cost/tonne increased by 2%/3% YoY/QoQ to Rs 4,568 on the back of higher raw material and freight costs, while power/fuel cost was lower by 12% on a tonne basis.

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