Highlights of the Concall

• The company has posted 17% drop in net profit to Rs.91.51 crore despite 15% jump in net sales to Rs 518.24 crore for quarter ended June 2018. The Company Cement/Clinker sales volume stood at 0.71mt/0.09mt against 0.62mt/0.05mt in Q1FY18. Cement volume in North East stood at 0.51mt against 0.44mt in Q1FY18. Clinker production stood at 0.59mt against 0.61mt in Q1FY18. OPC:PPC:PSC mix stood at 80%:18%:2%.

• The Company expects Rs 430 crore GST subsidies in FY19/20. It expects to receive Rs150 crore by end-Sep or Dec'18 and the balance the next year. The Company expects to receive subsidy up to 2023 for its 2mt plant and up to 2027 for its 1.8mt plant.

• The company expects commissioning of its Silligudi plant in West Bengal by Dec'2020. Capex for the same is expected at Rs 200-250 crore. Its clinker capacity in the north-east is being de-bottlenecked, increasing capacity to 3mt (from 2.6mt), expected to be complete by Q2FY19.

• The company expects capex of Rs 450 crore for FY19 and FY20, where Rs 150-200 crore is expected to be spent in FY19 and balance in FY20.

• The Company expects 10% volume growth in coming quarter and ~8-10% growth for FY19. Road and Hydel Power projects, Bharatmala project (some projects have been announced in Manipur), Affordable Housing projects and pick-up in Rural Housing should help to improve demand going forward.