Company Update - Mangalam Cement - ICICI Direct

Mangalam Cement surprised positively on the margin front in Q1FY22 leading to 9.7% growth in profit despite 13.5% QoQ drop in revenues.

- Reported revenue of Rs. 355.5 crore, down 13.5% QoQ, led by sales volumes de-growth of 15.6% to 0.76 MT. On YoY basis, revenues were up 57.1%

- EBITDA/t was up 24.4% QoQ to Rs. 1,084/t (vs. last quarter EBITDA/t of Rs. 871/t). EBITDA margin was at 23.2%, up 408 bps QoQ, 262 bps YoY

- Ensuing PAT was at Rs. 40 crore, up 189.2% YoY, 9.7% QoQ

Key triggers for future price performance

- Upcoming UP elections in 2022 would continue to drive cement demand in UP, which contributes nearly 45% of its sales volume

- The enhanced clinker capacity will aid in increasing the capacity utilisation (CU) of its cement plant, which had a CU of 68% against 93% CU of clinker capacity in FY20

- The company is eligible for various incentives like interest free loan from UP government, railway freight rebate under long term contract, etc. This would continue to provide cost advantage

For details, click on the link below: Link to the report

Shares of MANGALAM CEMENT LTD. was last trading in BSE at Rs. 459.15 as compared to the previous close of Rs. 448.7. The total number of shares traded during the day was 24798 in over 1406 trades.

The stock hit an intraday high of Rs. 464.05 and intraday low of 450.55. The net turnover during the day was Rs. 11349588.

Source : Equity Bulls

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