- Company reported a strong EBITDA, beating estimates by almost 30%, driven by better than expected realizations and strong execution on costs.
- Profitability in 2nd half to be supported by a pickup in volume growth (operating leverage) and further benefit from reduction in petcoke cost, to be reflected in 3Q20 financials.
- Room for Shree to achieve standalone cement EBITDA/ton of Rs1350-1400/ton (vs. Rs1450/ton in 1H), even after assuming a cumulative decline of 5% in realizations over the next two quarters.
- Given strong mix in the North region (~70%), where pricing discipline has been relatively stronger, there is upside risks to earnings.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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