Q1 2025 Star Cement Ltd Earnings Call Transcript
Key Points
- Star Cement Ltd (NSE:STARCEMENT) managed to grow its market share in the Northeast by 3% despite an overall market degrowth of 8% in the region.
- The company expects a significant improvement in EBITDA per tonne from Q2 onwards due to the cessation of external clinker purchases and the commencement of SGST benefits.
- Star Cement Ltd (NSE:STARCEMENT) has a robust CapEx plan of INR835 crores for FY25, focusing on strategic projects like the Silchar plant, AAC blocks, and WHRS.
- The company anticipates a 10-15% volume growth over the next three quarters, despite a challenging Q1.
- Star Cement Ltd (NSE:STARCEMENT) is investing in renewable energy projects, including a 12-megawatt WHRS and an 18-megawatt group captive solar and wind project, which are expected to yield significant cost savings.
- The company's EBITDA for Q1 FY25 decreased to INR118 crores from INR138 crores in the same period last year, primarily due to the purchase of external clinker.
- PAT for Q1 FY25 dropped significantly to INR31 crores from INR93 crores last year, impacted by increased depreciation and other one-time costs.
- Revenue for Q1 FY25 was INR736 crores, down from INR755 crores in the same period last year.
- The company faced a challenging Q1 due to adverse weather conditions and elections, which impacted demand and revenue growth.
- Pricing in both Northeast and outside Northeast regions has declined post-June, affecting profitability.
Ladies and gentlemen, good day, and welcome to Star Cement Limited Q1 FY25 Earnings Conference Call hosted by ICICI Securities. (Operator Instructions). Please note that this conference is being recorded. I now hand the conference over to Mr. Navin Sahadeo.
Thank you, and over to you, sir.
Thank you, Lisa. Good afternoon, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY25 Earnings Call of Star Cement. We have with us -- from the management, we have with us Mr. Tushar Bhajanka, Deputy Managing Director; and Mr. Manoj Agarwal, the CFO of Star Cement.
So without any further ado, I hand over the floor to Tushar for his opening comments. Over to you, sir.
Good afternoon all, my name is Tushar Bhajanka, and I'm the Deputy MD of Star Cement. I would like to welcome you all to the earnings call of quarter 1. I have our CFO of the company with me. He will run
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