Key highlights

• The Company posted 36% jump in its Net Profit to Rs 44.40 crore recorded in Q4FY19 from Rs 32.66 crore in Q4FY18. Company registered healthy production and sales growth of 33% and 32% respectively. Higher volume led to increase in Net Sales by 31% at Rs 1172.46 crore in Q4FY19. EBIDTA before Other Income were up at Rs.131.24 crore from Rs.101.27 crore in Q4FY18. Company's profitability would have been higher but impacted due to higher pet coke & diesel prices. After accounting for Other Income, interest and depreciation, PBT increased by 70% to Rs 57.40 crore in Q4FY19.

• For FY19, the Company recorded a cement volume growth of 15% as against industry growth of 12% All India and 9% in the Company's operating market. Net Sales rose by 14% to Rs.3882.34 crore. EBIDTA before Other Income increased to Rs.415 crore (Rs 411.36 crore). PBT stood higher at Rs 104.43 crore (Rs 102.71 crore). The Net Profit was at Rs 80.10 crore (Rs 82.15 crore).

• The Company sales volume increased stupendous 32% to 2.94 mt (including clinker of 0.21 mt) in Q4FY19. Further, clinker and cement production stood at 1.74 mt and 2.6 mt, respectively in Q4FY19 and it bought 0.15 mt and sold 0.21 mt clinker during the quarter. Clinker units ran at 100% capacity utilisation in its all 3 units. The Company PPC production stood at 65% in FY19, which it expects to take to 70% in FY20.

• The Company improved its Fuel consumption to 699 K.Cal/kg of Clinker in Q4FY19 from 700 KCal/Kg of Clinker in Q4FY19. Company's concerted efforts of reducing logistic and manufacturing costs contributed to the improved performance.

• The Company Northern kilns uses >90% petcoke, its Eastern unit uses 50% petcoke and 50% domestic coal. Average fuel price/tonne stood at Rs 8,073 in Q4FY19 vs. Rs7,500 in Q4FY18 and Rs 8,300 in FY19 vs. Rs 7,100 in FY18. In FY19, petcoke usage was to 80%, 16% coal and 4% AFRs.

• The Company has undertaken price hike of Rs 25-30/bag in the Northern markets during first two months of FY20, while it could not take any meaningful price hike in Chhattisgarh, which accounts for 60% of total Eastern sales volume.

• The Company has two projects in hands, 20 MW Thermal Power Plant at Durg and 0.8 million Odisha Grinding Unit. Durg project is likely to be commissioned in the Q1FY20. The Company expects its 0.8mnT SGU in Odisha to be commissioned in Q2FY19 as it is delayed by two months due to cyclone in the state. The Company has incurred capex of Rs 200 crore (Rs 170 crore for CPP and SGU), while it guides for a capex of Rs 75 crore (including Rs 35 crore for CPP and SGU) in FY20. These projects will further boost company's operating efficiencies in terms of lower power and logistic cost. On completion of 20 MW Thermal Power Plant at Durg, Company's captive power capacity will be enhanced to 105.5 MW.

• The Company expects higher single-digit sales volume growth in FY20.