India Cements Q3 Results Review - Weak Volume, Higher Cost Led Earnings Miss: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.India Cements Ltd.'s reported Ebitda of Rs 490 million (versus estimated Rs 895 million) in Q3 FY24. Sales volume declined ~9% YoY (15% miss) to 2 million tonne. Its blended Ebitda/tonne stood at Rs 247 (versus estimated Rs 383). Adjusted net loss stood at Rs 345 million (versus estimated Rs 130 million net loss).Management highlighted that cement prices have improved in Q3, which led to better NPR for the company. However, sales volume was adversely impacted due to working capital crunch.The company continues to focus on lowering variable cost and improving NPR. During the quarter, India Cements successfully sold a ship for a profit of Rs 262 million (shown as exceptional) and in January 2024, it acquired a new ship.We cut our FY24E earnings (Ebitda cut ~20%), considering lower-than expected volume and profitability;however, we reiterate our FY25/FY26 estimates. We reiterate our 'Sell' rating on the stock with a target price of Rs 185 (premised on 11 times FY26E enterprise value/Ebitda)..Click on the attachment to read the full report:.Hero MotoCorp Shares Hit Life High After January Sales Jump 22%.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Cements Q3 Results Review - Weak Volume, Higher Cost Led Earnings Miss: Motilal Oswal

Capacity utilisation was ~51% versus 56% in Q3 FY23

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India Cements Q3 Results Review - Weak Volume, Higher Cost Led Earnings Miss: Motilal Oswal

Capacity utilisation was ~51% versus 56% in Q3 FY23

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