Q1 2027 Star Cement Ltd Earnings Call Transcript
Key Points
- Cement sales volume grew 6.5% YoY to 13.02 lakh tonnes, driven by a 21.4% increase in sales outside the Northeast.
- Total revenue increased 6.5% YoY to INR902 crore, supported by higher sales volumes.
- Management expects fuel costs to decline from INR1.55 per Kcal in Q1 to INR1.45 in Q2, with further reductions anticipated in H2.
- The company is advancing its Rajasthan expansion project, with environmental clearance expected by October and construction starting in November, targeting commissioning in FY29.
- Cost-saving initiatives, including a railway siding in Silchar, a wagon tippler in Siliguri, and EV adoption, are expected to reduce logistics and operational costs over the next 3-6 months.
- EBITDA declined 11.7% YoY to INR203 crore, with per-tonne EBITDA falling to INR1,497 from INR1,774, due to reduced subsidies, higher packing material costs, and shutdown expenses.
- Profit after tax dropped 24.5% YoY to INR74 crore, impacted by lower EBITDA and higher costs.
- Fuel costs surged to INR1.55 per Kcal in Q1 from INR1.33 in Q4, driven by higher spot coal purchases due to FSA supply disruptions.
- The company revised its FY27 volume growth guidance down to 8-9% from 10-12%, citing muted demand and severe flooding in Assam.
- Subsidy income is expected to decline to INR115 crore in FY27 from INR145 crore, as the Assam government has spread the incentive payout over a longer period.
Ladies and Gentlemen, Good day and welcome to Star Cement Limited Q1 FY27 earnings conference call hosted by ICICI Securities Limited. (Operator Instructions) Please note that this conference has been recorded.
I now hand the conference over to [Mr. Naveen Sahadev]. Thank you and over to you, sir.
Thank you, Anushka. So good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY '27 earnings call of Star Cement Limited. From the management, we have with us MD and CEO, Mr. Tushar Bhajanka; and the company's CFO, Mr. Manoj Agarwal. So without any further ado, I hand over the floor to the management for their opening comments. Over to you, sir.
Hi, good afternoon, everyone. My name is Tushar Bhajanka, and I'm the MD of Star Cement. I welcome you all to the conference call of FY27, quarter one. I would like our CFO, Mr. Manoj Agarwal, to give his
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