Dear All,
Forwarding you the Result Flash on Madras Cements for 4QFY2011 with a Neutral Recommendation.
Madras Cements registered a 3.1% yoy growth in top-line to `686cr primarily due to a 25.4% increase in cement realization to `4,009 per tonne. However, on a sequential basis the realizations were flat. The company’s sales volume declined by ~18%yoy to 1.7mn tonnes. On the operating front, the company’s profit rose by 44.9% yoy to Rs186cr. The improvement in operating profit was due to the spike in realizations. On the bottom-line front, the company’s net profit rose by 118% yoy to `64cr. We maintain a neutral view on the stock.
Exhibit 1: Actual v/s Angel estimates
| Particulars (` cr) | Actual | Estimates | Variation (%) |
| Net Sales | 686 | 618 | 11.1 |
| Operating Profit | 186 | 162 | 15.1 |
| OPM (%) | 27 | 26 | |
| Net Profit | 64 | 55 | 16.8 |
Source: Company, Angel Research
Exhibit 2: 4QFY2011 Performance
| Y/E March (Rs cr) | 4QFY2011 | 3QFY2011 | % Chg qoq | 4QFY2010 | % Chg | FY2011 | FY2010 | % Chg |
| Net Sales | 686 | 579 | 18.5 | 666 | 3.1 | 2,605 | 2,809 | (7.3) |
| Other Operating Income | 16 | 4 | 5 | 31 | 13 | |||
| Total revenue | 703 | 583 | 20.5 | 671 | 4.8 | 2,636 | 2,822 | (6.6) |
| Net Raw Material Costs | 115 | 72 | 60.6 | 110 | 4.5 | 391 | 398 | (2.0) |
| (% of Sales) | 16.8 | 12.3 | 16.6 | 15.0 | 14.2 | |||
| Power & Fuel | 166 | 149 | 12.0 | 169 | (1.5) | 661 | 596 | 10.8 |
| (% of Sales) | 24.2 | 25.5 | 25.4 | 25.4 | 21.2 | |||
| Staff Costs | 35 | 43 | (18.5) | 35 | 0.1 | 154 | 137 | 12.2 |
| (% of Sales) | 5.1 | 7.3 |
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