Performance for the quarter ended September 2019

Total income from operation (including the power segment revenue) grew 8% to Rs 2,801.71 crore for the second quarter ended September 2019. The growth in topline was due to surge in revenue from cement segment by 11% to Rs 2,662.25 crore (86% of total revenue) while power business segment revenue fell by 5% to Rs 420.20 crore (14% of total revenue).

OPM increased to 30.1% from 20.1% in corresponding previous quarter. The increment in OPM was due to drop in raw material costs by 120 bps to 6.4%, power & fuel cost by 180 bps to 21.2%, freight & forwarding cost by 190 bps to 20.5%, and other expenditures by 450 bps to 15.7% as percentage to sales and net of stock adjustments. As a result, the OP rose 62% to Rs 844.15 crore.

The other income inclined by 12% to Rs 57.75 crore. The interest cost gained 16% to Rs 71.74 crore and depreciation went up 30% to Rs 428.32 crore. Thus, PBT before EO grew by 123% to Rs 401.84 crore. The Company booked Nil EO exceptional income/losses during the quarter as compared to Rs 178.13 crore EO exceptional losses in financial instruments corresponding previous quarter. As a result, PBT after EO zoomed to Rs 401.84 crore as compared Rs 1.71 crore corresponding previous quarter. The tax outgo was Rs 92.79 crore during the quarter, thus, net profit advanced by 526% to Rs 309.05 crore.

Half yearly performance

Total revenue (including the power segment revenue) inclined 3% to Rs 5,838.12 crore for the six month ended September 2019. OPM improved to 29.9% from 19.4% in corresponding previous quarter, thus, OP advanced 59% at Rs 1,746.33 crore. Other income fell by 25% to Rs 108.89 crore. The interest cost increased by 18% to Rs 139.78 crore. The depreciation went up 31% to Rs 830.99 crore. The PBT before EO, as a result, rose 82% to Rs 884.45 crore. The Company booked NIL EO exceptional income/losses during the period as against EO exceptional losses of Rs 178.13 crore in financial instruments corresponding previous period. As a result, PBT after EO rose 186% to Rs 884.45 crore. With net tax outgo of Rs 212.37 crore, the company booked net profit of Rs 672.08 crore, up by 104% from net profit of Rs 328.81 crore in corresponding previous period.

For the financial year ended March 2019 (FY 2019), total revenue (including the power segment revenue) inclined 19% to Rs 11,722 crore. OPM reduced by 250 bps to 22.6%, thus, OP growth trimmed to 7% at Rs 2,652.82 crore. Other income fell by 37% to Rs 245.40 crore. The interest cost increased by 83% to Rs 246.98 crore. The depreciation went up 55% to Rs 1,391.68 crore. The PBT before EO, as a result, declined 31% to Rs 1,259.56 crore. The Company booked EO exceptional losses of Rs 178.13 crore in financial instruments during period. As a result, PBT after EO dropped 41% to Rs 1,081.43 crore. The tax outgo fell 71% to Rs 130.38 crore, thus, net profit declined by 31% to Rs 951.05 crore.

The scrip was last traded at Rs 18,661.20 (18 October 2019) on the BSE.