"ICEM’s 2QFY15 revenues grew 4% YoY (-8% QoQ) to INR11.3b (v/s est of INR11.2b). EBITDA grew 40% YoY (+14% QoQ) to ~INR1.79b (v/s est INR1.83b). Higher interest cost on account of Fx cost restricted PAT to ~INR75m (v/s est ~INR236m). Cement volume de-grew 3.6% YoY (-8% QoQ) to 2.35mt (v/s est of 2.32mt). Cement realizations improved 10% QoQ (+13% YoY) to INR4,655/ton (v/s est of INR4,544). Also, cost was in-line, despite higher freight cost (due to ban on overloading), drove in-line EBITDA/ton at ~INR762 (v/s est ~INR788)."
"We are revising our consol. EPS for FY15/16 by +62%/-8% to factor in for a) lower volumes, b) higher realizations and c) higher interest. The stock trades at 6.2x/4.3x FY16/17 consol. EV/EBITDA and USD72/66 EV/ton. Maintain Neutral with target price to INR122 (USD75 FY16 EV/ton)", says Motilal Oswal research report.
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