Key highlights

• The Company posted 187% jump in its Net Profit to Rs 39.40 crore on the back of 13% growth in total income from operation to Rs 1041.88 crore for the quarter ended June 2019. The operating profit for the quarter stood at Rs. 175.75 crore as against Rs. 104.87 crors in the corresponding quarter of last year.

• For Q1FY20, the Company total sales volume rose 2% to 23.3 lakhs tones (cement- 22.18 lakhs tones and Clinker-1.12 lakhs tones). Cement production was 20.74 lakhs tones, meanwhile cement sales were 22.18 lakhs, registering a 11% growth over the corresponding quarter.

• The Company Employee cost increased in Q1FY20 due to commission to managerial personals and new recruitment.

• The Company other expenditures increased in Q1FY20 due to one-off expenditures pertaining to consultancy fees (Rs 20 crore) and political donation (Rs 5 crore). Company Consultant's (BCG) job is almost done, it won't incur any expenditure hereon. However, there might be an additional consultancy charges to the tune of Rs 5-6 crore in the rest of current fiscal.

• The Company northern kilns use 80-85% petcoke, its Eastern unit uses 60-65% petcoke and remaining uses domestic coal. Average petcoke price/tonne stood at Rs 7,800 in Q1FY20 vs. Rs 8,073 in Q4FY19. The Company expects petcoke cost to come down further by Rs 200/tonne in Q2FY20. It expects full benefit of lower petcoke price to accrue from H2FY20 onwards due to high cost carrying inventory.

• The Company has commissioned the thermal power plant of 20 megawatts. Also Odisha grinding unit is likely to be commissioned by the end of Q2FY20.

• The Company debt equity has considerably improved from 1.39 to 1.06 as of 31st March, 2019. The Company Net debt would be about Rs. 1,500 crores of gross debt and about Rs. 400 crores of cash. Every year Company repay about Rs. 200 crores to Rs. 230 crores, so its about Rs. 50 crores to Rs. 60 crores repayment per quarter.

• The Company expects cement volume to grow by ~10% in the current fiscal, while the blended volume likely to remain soft due to lower clinker volume.

• The Company expects CAPEX of Rs. 75 crores, Rs. 80 crores for FY20, as some remnant portion of that Orissa grinding unit would be there.