Revenue seen at Rs40,867 million, EBITDA at Rs9,836 million

Shree Cement’s volumes might decline within the March 2022 quarter as in comparison with the year-ago quarter owing to the upper base again then. Sequentially although, volumes might develop by ~22%. Progress in realizations might drive 4% improve in income versus the year-ago quarter.

Rising costs of key inputs, particularly, petcoke and imported coal might result in a pointy improve of 27% in price of manufacturing as in comparison with the year-ago quarter. This, together with larger working price might have a bearing on the corporate’s gross margin. Value hikes of about 2% although might arrest the decline in EBITDA to 16.4% on a year-on-year foundation. EBITDA per ton might additionally decline, in sync with escalating prices.

Essential administration insights to be careful for:

·         Demand traits throughout key markets

·         Outlook on enter prices, value hikes and margins

 

Supply: IIFL Analysis