Star Cement Limited , a prominent player in the Northeast Indian cement market, has reported robust financial results for the first quarter, demonstrating significant growth and outlining ambitious expansion plans.

Financial Highlights

The company's revenue for Q1 rose to Rs. 847.00 crores, marking a 15% increase from Rs. 736.00 crores in the same quarter last year. More impressively, EBITDA nearly doubled to Rs. 230.00 crores from Rs. 118.00 crores year-over-year, while profit after tax more than tripled to Rs. 98.00 crores from Rs. 31.00 crores.

Star Cement's operational efficiency also showed substantial improvement, with EBITDA per ton rising to Rs. 1,774.00 from Rs. 1,018.00 in the previous year. The company's Deputy Managing Director, Tushar Bhajanka, attributed this performance to improved demand and cost management strategies.

Sales and Market Share

During the quarter, Star Cement sold 12.22 lakh tons of cement and 0.74 lakh tons of clinker. The company maintains a strong presence in the Northeast region, which accounts for 73% of its sales, with a market share of 27-28%.

Expansion Plans

Star Cement has outlined aggressive expansion plans to capitalize on the growing demand in its core markets and beyond:

1. A 2 million ton capacity plant in Silchar, expected to be operational by January/February 2026.
2. Another 2 million ton plant in Jorhat, slated for completion by 2027.
3. A major expansion into Rajasthan, with plans for a 3 million ton clinker plant and a 4 million ton grinding unit, requiring an investment of Rs. 2,400.00-2,500.00 crores.

Diversification and Sustainability Initiatives

The company has also diversified its product offerings by commissioning an AAC block plant. Additionally, Star Cement is pursuing green energy initiatives, including plans for 40 megawatts of solar power capacity.

Financial Outlook

Management expects to receive Rs. 230.00-250.00 crores in incentives. The company's CFO, Manoj Agarwal, reported a current net debt of Rs. 320.00 crores, which the company considers manageable given its strong cash flow position.

Market Outlook

Star Cement projects the Northeast market to grow at a 10% CAGR over the next 3-4 years, driven by infrastructure projects and increasing cement consumption. The company aims to maintain its strong market position while expanding into new territories.

Tushar Bhajanka commented on the results, stating, "Our performance this quarter reflects the strong demand in our core markets and the success of our operational strategies. We are well-positioned to capitalize on the growing infrastructure needs in the Northeast and are excited about our expansion plans in Rajasthan."

As Star Cement continues to strengthen its position in the Northeast and eyes new markets, investors and industry observers will be keenly watching the company's execution of its ambitious growth plans in the coming years.

Star Cement Limited, a prominent player in the Indian cement industry, has announced its financial results for the first quarter, showcasing significant growth and improved profitability. The company's board has also declared an interim dividend, signaling confidence in its financial performance.

Robust Financial Performance

For the quarter ended June 30, Star Cement reported impressive growth in both standalone and consolidated financial results:

Standalone Results:

Consolidated Results:

Interim Dividend Declaration

The Board of Directors has declared an interim dividend of 100% (Re. 1 per share). The record date for determining eligible shareholders is set for August 14, with the dividend to be paid within 30 days of declaration.

Operational Highlights

Star Smart Building Solutions Limited (SSBSL), a subsidiary of Star Cement, has expanded its product portfolio. On June 2, SSBSL commenced production of:

• Autoclaved Aerated Concrete Block (AAC Block) with an installed capacity of 2.40 lakh cubic meters per annum
• Construction chemicals with an installed capacity of 1.20 lakh tonnes per annum

These new production lines are located in Guwahati, potentially strengthening the company's market position in the region.

Looking Ahead

Star Cement's robust performance sets a strong foundation for the fiscal year. The company's expansion into AAC blocks and construction chemicals through its subsidiary demonstrates a strategy to diversify its product offerings and capture additional market segments.

Investors and analysts will likely be watching closely to see if Star Cement can maintain this growth trajectory in the coming quarters, especially given the cyclical nature of the cement industry and its sensitivity to economic conditions.

The company has scheduled a conference call with analysts and investors on August 12 to discuss the Q1 results in detail, which may provide further insights into the company's performance and future outlook.

As Star Cement continues to strengthen its position in the cement and building materials sector, its financial results and strategic initiatives will be of interest to stakeholders in the construction and infrastructure industries.