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Canada Goose sale The cement sector started FY19 on a strong note as Canada Goose sale majority of companies recorded healthy volume growth in the first quarter. On the cost front, companies are showing minor improvement on a quarter on quarter (QoQ) basis as buy canada goose jacket cheap rising input pressures appear to have stabilised. Canada Goose sale

buy canada goose jacket FY18 had turned out uk canada goose outlet to be a challenging year as the industry faced multiple disruptions like sand mining and petcoke ban and rising fuel prices. However, the worst seems to be over as some of these issues appear to have been resolved. The industry is looking ahead to improved capacity utilisation in coming years as demand environment (led by pick up in infrastructure and housing) is expected to remain buoyant. We have analysed the performance of Star Cement, Heidelberg Cement and Shree Cementto check which ones are worthy of investment at this juncture. buy canada goose jacket

canada goose deals Star Cement, the largest producer in the northeast, reported strong topline growth for the June quarter. Volume growth of 14 percent year on year (YoY) and improved realisations drove the double digit growth in topline. canada goose deals

canada goose Operating profit margin declined over previous quarters on account of rising cost pressures. Expenses came in higher due to multiple factors. Freight expenses jumped as related subsidies of around Rs 300/tonne expired in January. Rising petcoke and coal prices resulted in increased fuel expenses. Besides canada goose black friday sale these, the company also incurred advertisement expenses of Rs 100/t, which dragged operating margin lower. canada goose

cheap Canada Goose Clinker utilisation reached near full capacity and has been canada goose clearance sale displaying this trend for the last two quarters. To meet additional demand, Star Cement is planning to expand clinker capacity from 2.6 MT to 3 MT by investing around Rs 15 crore. cheap Canada Goose

The management plans canada goose clearance to set up a 1.5 2 MT grinding uk canada goose unit in Siliguri (West Bengal) at a cost of Rs 200 250 crore. This capacity is expected to turn operational by the second half of FY20.

canada goose black friday sale It expects volume growth momentum to continue as a number Canada Goose Coats On Sale of infrastructure projects have been announced in the region in recent months. The management also expects earnings before interest, tax, depreciation and amortisation (EBITDA) per tonne https://www.canadagoosejacketonlines.ca to improve buy canada goose jacket Rs 1,800 1,850 from Rs 1,600 witnessed during the quarter gone by. canada goose black friday sale

Canada Goose Parka Heidelberg Cement reported a strong Q1 FY19 with sales and EBITDA growth of 22 percent and 78 percent YoY, respectively. It recorded volume growth of 15 percent owing to a strong demand in the central region. Canada Goose Parka

buy canada goose jacket cheap Players in the central region (comprising Madhya Pradesh and Uttar Pradesh) continue to have strong pricing power. The company reported 5 percent QoQ improvement in realisations. Amid strong demand from rural markets in MP and UP, the company hiked cement prices canada goose uk shop by Rs 15 20 per bag in June. buy canada goose jacket cheap

Canada Goose online Operating leverage from higher capacity utilisation, cost benefits from its Waste Heat Recovery System plant and conveyor belt offset the increased cost pressures and resulted in the sharp jump in operating profit to Rs 119 crore in Q1. Canada Goose online

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canada goose clearance sale Shree Cement reported a healthy topline growth of 19 percent in the quarter gone by on the back of over 18 percent volume growth accruing from demand in its key operating markets. The company reported 12 percent and over 35 Canada Goose Online percent volume growth in northern and eastern markets, respectively. canada goose clearance sale

Canada Goose Outlet Despite the strong canada goose coats on sale topline growth, EBITDA declined 19 percent YoY to Rs 575 crore owing to increased cost pressures and forex losses. On a segment basis, operational performance was Canada Cost of precose Goose online particularly weak in the cement segment, which dropped to Rs 532 crore (versus Rs 715 crore in Q4 FY18 and Rs 616 crore in Q1 FY18). This was partly offset by power segment, which reported a cheap canada goose uk strong jump in EBITDA to Rs 42 crore in Q1 (versus Rs 13.5 crore in Q4 FY18 and Rs 1.4 crore loss in Q1 FY18). Canada Goose Outlet

canada goose clearance Additionally, EBITDA was also impacted by a mark to canada goose outlet mark forex canada goose factory sale loss of around Rs 70 crore on account of external commercial borrowing (ECB) drawn to fund the acquisition of UAE based Union Cement Company (UCC). Earlier this year, it acquired the 3 MT clinker unit of UCC for an enterprise value of around $305 million. canada goose clearance

canada goose store During Q1, it completed the acquisition of UCC and also commissioned a 3 MT cement plant unit canada goose at Gulbarga (Karnataka). canada goose store

Canada Goose Jackets The management Canada Goose Jackets expects slight improvement in Q2 operating margin as exit prices in northern and eastern regions were higher than the Q1 average. Canada Goose Jackets

Outlook and recommendationWith a pick up in infrastructure development activities, overall demand is expected to remain firm. Government spending on infrastructure, along with affordable housing schemes, should propel cement industry growth to 7 8 percent in the current fiscal.

canadian goose jacket We prefer Heidelberg Cement and Star Cement from the above mentioned names. Heidelberg Cement has a strong positioning in the central market and a superior margin profile compared to its similar sized peers. Firm cement prices in the central region along with strong operating leverage is expected to aid Heidelberg Cement’s earnings over the next 12 15 months. The stock has seen a strong rally after its Q1 result and is now trading at a FY19 enterprise value/EBITDA multiple of 10 times. We therefore advise investors to accumulate this stock on dips. canadian goose jacket

Despite the lacklustre quarterly performance, Star Cement stands to benefit from its strong presence in the northeast and industrial development in this region. While the demand picture looks robust, the company is facing a challenging cost environment with rising input costs and expiry of freight subsidy. Star Cement with its unique geographical positioning is well positioned to overcome near term cost pressures. The company is trading at a FY20e EV/EBITDA canada goose uk outlet multiple of nearly 9 times and remains our top pick from the midcap cement Canada Goose Outlet sector from a long term perspective.

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