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Earnings Call Transcript

Star Cement Earnings Call Transcript: Key Takeaways

Star Cement faces a challenging Q1 with EBITDA declining 11.7% YoY despite revenue growth, primarily due to lower subsidies and one-time shutdown costs.

Highlights
Revenue growthRevenue up 6.5% YoY to ₹902 Cr driven by volume growth.
MarginsEBITDA per ton fell to ₹1,497 from ₹1,774 YoY.
Demand visibilityNear-term muted by monsoons; recovery expected from Q3/Q4.
Management confidenceCautious due to flooding but optimistic about H2 recovery and expansions.

Growth

Revenue grew 6.5% YoY to ₹902 Cr; cement volumes rose 6.5%, but clinker sales dropped significantly.

Outlook

Management revised annual volume growth guidance down from 12% to 8-9% for FY27.

Risks

Ongoing Assam floods impact Q2 volumes; high fuel costs and subsidy reductions pressure margins.

Last quarter's promises, checked

Delivered

  • Guided 10-12% growth (FY26) → delivered 11.6% growth in cement volumes (= BEAT)
  • Guided INR 500-600 Cr capex (FY27) → delivered INR 2,700 Cr planned (= BEAT)

Partly delivered

  • Guided INR 145-150 Cr subsidy → delivered lower subsidies impacting margins (= PARTIAL)

Missed

  • Guided EBITDA INR 1,500-1,700/ton → delivered INR 1,497/ton (= MISS)
  • Guided 10-12% annual growth → delivered 6.5% Q1 revenue growth (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: STARCEMENT. Summary written with AI assistance from the document.

Read the document ↗

Star Cement Ltd: key numbers

Share price
₹186.61
Market cap
₹7,542 Cr
Revenue (annual)
₹3,776 Cr
Net profit (annual)
₹393.4 Cr
P/E (TTM)
20.4×Sector 33.0×
Promoter holding
58.10%-0.02% QoQ
FII holding
2.29%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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