JK Lakshmi Cement - Q4FY13 Result Review - Angel Broking

For 4QFY2013 JK Lakshmi Cement posted a 1.8% yoy increase in top-line to Rs. 536cr, which was in-line with estimates. Volumes rose marginally by 1% yoy to 1.43mn tonnes. OPM stood at 17.8% down 376bp on yoy basis. OPM declined on account of surge in raw material and freight costs. Change in the method of providing depreciation on split grinding plants pushed up depreciation costs by Rs. 11.5cr for the quarter. The company also incurred Rs. 16cr (depreciation charge pertaining to earlier years) of extra-ordinary expenses due to the change in depreciation methodology. Recurring PAT fell by 33% yoy to Rs. 50cr.

We maintain a Buy on the stock with a target Price of Rs. 143.

Source : Equity Bulls

Keywords