Fundamental Result Update

Ramco Cements Ltd Q1FY20 Result Update



Ramco Cements came out with good set of results in Q1FY20, ahead of our estimates except a minor miss on revenue. Revenue for the quarter grew 13.4% YoY to Rs 13839 mn against our estimate of Rs 14519 mn. EBITDA for Q1FY20 came at Rs 3593 mn (estimate Rs 3368 mn) a growth of 43.6% YoY and 10.5% QoQ. EBITDA margin expanded +545bps YoY/+475bps QoQ to 26% for the quarter against our estimate of 23.2%. Expansion in EBITDA margin came on the back of softening of coal and pet coke prices during the quarter. Also in its fuel mix, Ramco reduced its pet coke usage to 42% compared to 62% in Q1FY19. PAT for the quarter stood at Rs 1920 mn which was ahead of our estimate of Rs 1713 mn, a growth of 53.6% YoY and 16.1% QoQ. We remain positive on Ramco Cements from longer term perspective and factoring in strong result, upgrade the stock from Hold to Accumulate, with a target price of Rs 853 (unchanged).


Tags: TechnicalResult CalendarFundamental


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