JK Cement reported a good set of numbers for Q1FY22.
- While revenues declined 20.4% QoQ to Rs. 1633.7 crore led by 22.4% QoQ drop in volumes (3.02 MT), EBITDA of Rs. 399.6 crore was ahead of our estimated EBITDA of Rs. 355.5 crore mainly led by 300 bps QoQ increase in margins to 24.5%
- Higher realisations (up 2.6% QoQ to Rs. 5407/t) and lower cost of production (down 1.4% QoQ to Rs. 4143/t) supported margin expansion. EBITDA/t came in at Rs. 1,323/t vs Rs. 1,219/t last year and Rs. 1,128/t last quarter
- PAT of Rs. 208.3 crore remained higher than estimated PAT of Rs. 158.9 crore
Key triggers for future price performance
- Stabilisation of newly commissioned capacities (4.2 MT in FY21) to generate higher operational cash flows and support next leg of growth
- In phase-II expansion, the company to add another 4 MT integrated cement capacity (2.6 MT clinker capacity), 22 MW power plant with capex of Rs. 2970 crore. This would further expand its footprints in UP & MP market
- Despite capex, net debt to remain below Rs. 2,500 crore due to cash generation and debt repayments to the tune of Rs. 1200 crore over FY22-24E
For details, click on the link below: Link to the report
Shares of J.K. CEMENT LTD was last trading in BSE at Rs. 3182 as compared to the previous close of Rs. 3116.85. The total number of shares traded during the day was 5601 in over 1368 trades.
The stock hit an intraday high of Rs. 3210 and intraday low of 3113.8. The net turnover during the day was Rs. 17715838.