Quarterly Results: India Cements Ltd
Bhagyashree Vivarekar / 21 Nov 2016
India Cements Ltd is currently trading at Rs 116.3, down by 0.65 points or 0.56% from its previous close. The company reported strong performance at the bottomline level. Net profit for the quarter rose 62.1% YoY to Rs 62 crore.
Technical View:
India Cements Ltd is currently trading at Rs 116.3, down by 0.65 points or 0.56% from its previous close of Rs 116.95 on the BSE. The scrip opened at Rs 120.90 and has touched a high and low of Rs 121 and Rs 116.20, respectively. So far 3538310 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.
Standalone Results Q2FY17:
India Cements’ Q2FY17 standalone numbers have beaten our estimates. Revenue came in 18.3% higher than the estimated Rs 1,111 crore, while EBITDA was 10.2% above the estimated figure of Rs 210 crore. Also, the company reported a net profit that was 12.2% higher than our estimate of Rs 56 crore. The standalone net revenue for the quarter rose 6.9% YoY to Rs 1,314 crore.
The company's EBITDA for the period declined marginally (0.7%) YoY to Rs 231 crore with EBITDA margin contracting 135 bps to 17.6%. This was primarily due to the cost of materials consumed rising 28% YoY.
However, the company reported strong performance at the bottomline level. Net profit for the quarter rose 62.1% YoY to Rs 62 crore due to a 11.4% YoY decline in finance costs and effective tax rate dropping from 49% in Q2FY16 to 32% this quarter.