Star Cement falls 5% on tepid March quarter; profit drops over 10%

Shares of Star Cement fell up to 4.6 per cent at Rs 225.45 per share on the BSE in Thursday’s intraday deals. The slump in stock price came after the Cement firm delivered a sluggish quarter four performance for the financial year 2022-23 (Q4FY24). Star Cement, an Indian cement maker is also one of the largest cement manufacturers in Northeast India.

Star Cement's net profit dropped 10.3 per cent to Rs 87 crore from Rs 96 crore year-on-year (Y-o-Y), while revenue rose 9.2 per cent to Rs 913 crore compared to Rs 829 crore in the same period last year. 

Earnings before interest tax depreciation and amortisation (Ebitda) stands at Rs. 187.5 crore in March 2024 up 4.8 per cent from Rs. 178.9 crore in March 2023.

On a full year basis, Star Cement’s revenues soared by 6.1 per cent YoY to Rs 2,937 crore in FY24 as against Rs 2,756 crore in FY23. However, the company’s edged up  15.7 per cent in FY24 to Rs 293 crore versus Rs 247 crore in FY23. Ebitda margins improved to 24 per cent in FY24 compared to 28 per cent a year earlier. 

The company’s total expenses grew to Rs 2,513 crore, up 7.5 per cent from Rs 2,377 crore in FY23. 

At 11:57 PM; the stock of the company was up 4.26 per cent at Rs 1,872 per share on the BSE. By comparison the S&P BSE Sensex rose 0.48 per cent. 

The share price of the company has dipped by 2 per cent year to date while it surged by 9.6 per cent in the last six months. The company is presently trading at a price to earnings valuation of Rs 38.49 times.