The shares of a Cement stock, specializing in producing high-quality cement for the construction industry, jumped upto 2 percent after being declared the preferred bidder by the Government of Assam.
Price action
With a market capitalization of Rs. 8,508.00 crores on Wednesday, the shares of Star Cement Limited jumped upto 2.1 percent making a high of Rs. 214.60 per share compared to its previous closing price of Rs. 210.20 per share.
What Happened
Star Cement Limited engaged in producing high-quality cement for the construction industry was declared the preferred bidder for the North Boro Hundong Limestone Block (Part A) by the Government of Assam and this block spans 200 hectares in the Dima Hasao district and is estimated to contain 192.36 million tonnes of limestone.
About the company
Star Cement Limited is a prominent cement manufacturer in India, recognized for its commitment to quality and sustainability in the construction sector. Established in 2001, the company produces a range of cement products, including ordinary Portland cement and blended cement, catering to both residential and commercial projects.
Future Expansion Plan
The company plans to expand two grinding units in Silchar and Jorhat, along with an 800 CBM AAC block plant in Assam, with a total investment of approximately Rs. 1,300 crore and total capital expenditure (CAPEX) of around Rs. 220 crore is planned for Q4 FY25.
Key operational achievements (Q3FY25)
The company achieved key operational milestones, selling 10.6 lakh tons of cement, reflecting a growth of 9.7 percent YoY. In the Northeast region, sales reached 8.37 lakh MT, marking a 14.9 percent increase, while the Outside Northeast (OSNE) region experienced a decline of 6.1 percent, with sales of 2.24 lakh MT.
The company’s EBITDA for Q3 FY25 stood at Rs. 107 crore, down from Rs. 153 crore in Q3 FY24, resulting in an EBITDA per ton of Rs. 1,007, compared to Rs. 1,582 per ton in the same period last year.
Financials
The company’s total revenue rose by 10 percent from Rs. 655.53 crore to Rs. 721.28 crore in Q3FY24-25. Meanwhile, Net profit declined from Rs. 73.52 crore to Rs. 9.06 crore during the same period.
Written by Sridhar J
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