Key highlights 

• The Company has posted 127% surge in net profit to Rs 99.88 crore on the back of 27% gains in sales revenue to Rs 831.62 crore for the fourth quarter ended March 2021, aided by strong demand uptick and firm prices. Cement volumes grew 17.5% to 1.85 mt at 92.5% capacity utilisation in Q4FY21. 

• The Company rail-road mix was 22:88, the lead distance slightly above 300km. Higher diesel and plastics prices led to higher freight costs. 

• The Company expects cement volumes at 70% of the Q4FY21 level in Q1FY22, as demand at small projects and urban areas was impacted by the second Covid wave, whereas rural/large project/semi-urban demand continues to hold up. The Company expects 20% volume growth in FY22. 

• The Company share of premium cement in trade sales was 9% in Q4FY21. However, it touched ~15% in the company's core markets (North Telangana/ Karnataka, etc.). Higher infra demand led to its non-trade share increasing in Q4; the OPC share was 40%. 

• The company expects to increase its capacity to 11.5 mt by FY24 (debottleneck of 0.5 mt and 3 mt brownfield at Devapur plant) at Capex of Rs 2000 crore (including cost for 10MW WHRS plant). The expansion will be funded through a 50:50 mix of debt and internal accruals. 

• The company expects the solar power plant at AMP Solar Systems to commence by Q2FY22, which will suffice for 40% of the power required at its Jalgaon unit. 

• The company cashflows improved in FY21 with no major capex and well-managed working capital. The company bring down gross debt to ~Rs 770 crore in FY21 from ~Rs1200 crore in FY20. As of 31st Mar'21, net debt and cash including liquid investment were below Rs 650 crore and Rs 150 crore, respectively. The company aims of reducing debt to ~Rs100 in FY22, leading to a debt free balance sheet.