Star Cement Limited — PPTs, 31-05-2025: Investor Presentation

1. Financial Highlights:

Star Cement’s cement and clinker sales rose 9.9% YoY to 15.32 lakh tons, driving revenue growth of 15% YoY to INR 1,052 Cr. Realizations inched up 0.3%, supporting a sharp 43% YoY jump in EBITDA to INR 268 Cr and an industry-leading margin of INR 1,815/ton (up 34%). PAT increased 41% to INR 123 Cr, backed by efficient operations and subsidies on new units. Gross cash accruals surged 62% YoY to INR 210 Cr, reflecting strong cash flows.

2. Strategic Initiatives & Growth Drivers:

Targeting ~12 MTPA capacity by FY27, Star Cement plans new 2 MTPA plants in Silchar and Jorhat, with FY26 capex around INR 800 Cr. Green energy accounts for 15% via a new 12 MW Waste Heat Recovery System, aiming to hit 55% by FY26. The firm is pushing alternative fuels and sustainability goals including net zero carbon by 2050 and water positivity, reinforcing its ESG focus.

3. Business Developments:

The company commissioned the 12 MW WHRS unit and secured state subsidies for the Guwahati grinding unit. It won preferred bidder status for Umrangso mines with 192.36 million tons reserves, enhancing raw material security. Soon starting AAC blocks and construction chemicals commercial production will diversify revenues beyond cement.

4. Market Position & Competitive Advantage:

With ~27% share in North-East India, Star Cement is the largest regional producer. Premium blended cement now forms 12.2% of trade sales (up from 6.6%), evidencing strong brand and pricing power. Its extensive dealer network (2,000+ dealers, 12,700+ retailers) plus captive power plants (51 MW TPP + WHRS) support cost leadership and distribution reach.

5. Investor Implications:

Capacity expansions, margin gains, and product diversification offer positive growth potential. A rising premium mix and sustainable energy initiatives enhance long-term competitiveness. Execution risks on large capex and mine approvals exist but recent progress shows strong operational control. Investors should monitor volume and margin traction as Star Cement leverages its North-East leadership.