Capitaline

Results 27-Apr-24

Analysis

Shree Digvijay Cement Co.

Revenue up 14.9% YoY to Rs 224.4 crore in Q4FY2024

On consolidated basis

Quarter ended March 2024 compared with Quarter ended March 2023.

Net sales (including other operating income) of Shree Digvijay Cement Co. has increased 14.94% to Rs 224.36 crore. Sales of Cement Business segment has gone up 14.89% to Rs 224.26 crore (accounting for 99.95% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 34.02% to Rs 43.02 crore. PBIT of Cement Business segment rose 33.98% to Rs 43.01 crore (accounting for 99.98% of total PBIT). PBIT of Logistics Business reported profit of Rs 0.01 crore compared to loss of Rs 0.00 crore.

PBIT margin of Cement Business segment rose from 16.45% to 19.18%. Overall PBIT margin rose from 16.44% to 19.17%.

Operating profit margin has jumped from 19.54% to 21.38%, leading to 25.77% rise in operating profit to Rs 47.97 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 17.03% to 18.74%. Employee cost increased from 4.26% to 4.58%. Other expenses fell from 59.29% to 54.66%. Power and Oil fuel cost fell from 36.01% to 27.19%. Freight charges rose from 14.74% to 18.17%.

Other income rose 12.37% to Rs 3.27 crore. PBIDT rose 24.82% to Rs 51.24 crore. Provision for interest rose 500% to Rs 0.06 crore. Loan funds declined from Rs 0.03 crore as of 31 March 2023 to Rs 0.02 crore as of 31 March 2024. Inventories rose to Rs 133.33 crore as of 31 March 2024 from Rs 115.44 crore as of 31 March 2023. Sundry debtors were higher at Rs 32.11 crore as of 31 March 2024 compared to Rs 21.66 crore as of 31 March 2023. Cash and bank balance declined from Rs 107.66 crore as of 31 March 2023 to Rs 13.84 crore as of 31 March 2024. Investments rose to Rs 2.15 crore as of 31 March 2024 from Rs 0.06 crore as of 31 March 2023 .

PBDT rose 24.71% to Rs 51.18 crore. Provision for depreciation fell 8.04% to Rs 8.23 crore. Fixed assets increased to Rs 193.83 crore as of 31 March 2024 from Rs 173.06 crore as of 31 March 2023. Intangible assets increased from Rs 15.66 crore to Rs 15.81 crore.

Profit before tax grew 33.84% to Rs 42.95 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 11.22 crore, compared to Rs 7.66 crore. Effective tax rate was 26.12% compared to 23.87%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 29.88% to Rs 31.73 crore.

Equity capital increased from Rs 145.20 crore as of 31 March 2023 to Rs 147.41 crore as of 31 March 2024. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 54.83% as of 31 March 2024 ,compared to 55.66% as of 31 March 2023 .

Full year results analysis.

Net sales (including other operating income) of Shree Digvijay Cement Co. has increased 8.99% to Rs 792.11 crore. Sales of Cement Business segment has gone up 9.21% to Rs 791.64 crore (accounting for 99.94% of total sales). Sales of Logistics Business segment has gone down 74.63% to Rs 0.47 crore (accounting for 0.06% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 65.30% to Rs 120.36 crore. PBIT of Cement Business segment rose 66.34% to Rs 120.32 crore (accounting for 99.97% of total PBIT). PBIT of Logistics Business segment fell 92.55% to Rs 0.04 crore (accounting for 0.03% of total PBIT).

PBIT margin of Cement Business segment rose from 9.98% to 15.20%. PBIT margin of Logistics Business segment fell from 25.53% to 7.49%. Overall PBIT margin rose from 10.02% to 15.19%.

Operating profit margin has jumped from 13.90% to 18.39%, leading to 44.15% rise in operating profit to Rs 145.65 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 17.70% to 19.31%. Employee cost decreased from 5.32% to 5.13%. Other expenses fell from 63.16% to 57.19%. Power and Oil fuel cost fell from 38.01% to 30.70%. Freight charges rose from 15.08% to 16.18%.

Other income rose 32.53% to Rs 9.33 crore. PBIDT rose 43.39% to Rs 154.98 crore. Provision for interest rose 58.21% to Rs 2.12 crore. Loan funds declined from Rs 0.03 crore as of 31 March 2023 to Rs 0.02 crore as of 31 March 2024. Inventories rose to Rs 133.33 crore as of 31 March 2024 from Rs 115.44 crore as of 31 March 2023. Sundry debtors were higher at Rs 32.11 crore as of 31 March 2024 compared to Rs 21.66 crore as of 31 March 2023. Cash and bank balance declined from Rs 107.66 crore as of 31 March 2023 to Rs 13.84 crore as of 31 March 2024. Investments rose to Rs 2.15 crore as of 31 March 2024 from Rs 0.06 crore as of 31 March 2023 .

PBDT rose 43.21% to Rs 152.86 crore. Provision for depreciation fell 1.82% to Rs 34.62 crore. Fixed assets increased to Rs 193.83 crore as of 31 March 2024 from Rs 173.06 crore as of 31 March 2023. Intangible assets increased from Rs 15.66 crore to Rs 15.81 crore.

Profit before tax grew 65.42% to Rs 118.24 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 30.46 crore, compared to Rs 13.4 crore. Effective tax rate was 25.76% compared to 18.75%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 51.14% to Rs 87.78 crore.

Equity capital increased from Rs 145.20 crore as of 31 March 2023 to Rs 147.41 crore as of 31 March 2024. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 54.83% as of 31 March 2024 ,compared to 55.66% as of 31 March 2023 .

Cash flow from operating activities increased to Rs 95.65 crore for year ended March 2024 from Rs 86.29 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 58.88 crore, compared to Rs 20.69 crore during the year ended March 2023.

Operation highlights:

Volume for the quarter stood at 3.94 lac ton v/s 3.33 lac ton in Q4FY2023.

Volume for the year stood at 13.61 lac ton v/s 12.59 lac ton in FY2023.

EBITDA per ton stood at Rs 1302/ton in Q4FY2024 as against Rs 1231/ton in Q4FY2023.

EBITDA per ton stood at Rs 1139/ton in FY2024 as against Rs 855/ton in FY2023.

Dividend: The board has recommended final dividend of Rs 3 per equity.

Management Commentary:

Commenting on the performance Anil Sanghvi –Executive Chairman of the Company said “SDCC continues to excel, this quarter we sold the highest ever cement and earned the highest EBITDA ever. | am very delighted at the stupendous performance of SDCC during the year. The company posted the highest ever EBITDA of Rs 15,494 lacs @ Rs 1,139 per ton, perhaps the best in the industry. It was led by high productivity of clinker and cement coupled with all round cost savings and sales performance.

The work on the new 1.5 million ton grinding unit is progressing well and it is expected to be commissioned in the fourth quarter of the year.”

Shree Digvijay Cement Co. : Consolidated Results

	Quarter ended			Year ended
Particulars	202403	202303	Var.(%)	202403	202303	Var.(%)
Net Sales (including other operating income)	224.36	195.20	14.94	792.11	726.74	8.99
OPM (%)	21.38	19.54	184 bps	18.39	13.90	448 bps
OP	47.97	38.14	25.77	145.65	101.04	44.15
Other Inc.	3.27	2.91	12.37	9.33	7.04	32.53
PBIDT	51.24	41.05	24.82	154.98	108.08	43.39
Interest	0.06	0.01	500.00	2.12	1.34	58.21
PBDT	51.18	41.04	24.71	152.86	106.74	43.21
Depreciation	8.23	8.95	-8.04	34.62	35.26	-1.82
PBT	42.95	32.09	33.84	118.24	71.48	65.42
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	42.95	32.09	33.84	118.24	71.48	65.42
EO Income	0	0	-	0	0	-
PBT after EO	42.95	32.09	33.84	118.24	71.48	65.42
Taxation	11.22	7.66	46.48	30.46	13.4	127.31
PAT	31.73	24.43	29.88	87.78	58.08	51.14
Minority Interest (MI)	0	0	-	0	0	-
Net profit	31.73	24.43	29.88	87.78	58.08	51.14
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	31.73	24.43	29.88	87.78	58.08	51.14
EPS (Rs)*	2.15	1.66	29.88	5.96	3.94	51.14

* EPS is on current equity of Rs 147.41 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Shree Digvijay Cement Co. : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202403	202303	Var.(%)	% of (Total)	202403	202303	Var.(%)
Sales
Cement Business	99.95	224.26	195.20	14.89	99.94	791.64	724.87	9.21
Logistics Business	0.05	0.11	0.00	-	0.06	0.47	1.86	-74.63
Total Reported Sales	100.00	224.36	195.20	14.94	100.00	792.11	726.74	9.00
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	224.36	195.20	14.94	100.00	792.11	726.74	9.00
PBIT
Cement Business	99.98	43.01	32.10	33.98	99.97	120.32	72.34	66.34
Logistics Business	0.02	0.01	0.00	LP	0.03	0.04	0.48	-92.55
Total PBIT	100.00	43.02	32.10	34.02	100.00	120.36	72.81	65.30
Less : Interest		0.06	0.01	331.88		2.12	1.34	58.43
Add: Other un-allcoable		-11.22	-7.66	-46.52		-30.46	-13.40	-127.36
PBIT Margin(%)
Cement Business		19.18	16.45	273.24		15.20	9.98	522.00
Logistics Business		6.97	0.00	697.03		7.49	25.53	-1,803.39
PBT	100.00	31.73	24.43	29.93	100.00	87.78	58.08	51.14

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