Star Cement Reports Record Sales Amid Rising Interest Expenses and Profitability Concerns

Star Cement has recently undergone a financial trend adjustment, reflecting a notable shift in its performance metrics for the quarter ending March 2025. The company reported its highest net sales at Rs 1,052.09 crore, alongside a peak PBDIT of Rs 262.72 crore. The operating profit margin also reached a significant 24.97%, indicating strong operational efficiency. Additionally, profit before tax (PBT) less other income stood at Rs 166.41 crore, while the profit after tax (PAT) was recorded at Rs 123.17 crore, translating to an earnings per share (EPS) of Rs 3.05.
However, challenges remain for Star Cement. Interest expenses over the latest six months have surged to Rs 18.61 crore, marking a growth of 43.04%. Furthermore, the PAT for the nine-month period has declined by 31.65%, highlighting potential concerns regarding profitability sustainability.

In terms of market performance, Star Cement has shown resilience with a 1-week return of 2.86%, significantly outperforming the Sensex, which returned only 0.33% in the same period. Over a longer horizon, the company has demonstrated impressive growth, with a 3-year return of 155.15% compared to the Sensex's 50.20%. This performance underscores the company's ability to navigate market fluctuations effectively.