JK Lakshmi Cement - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 465; MCap: Rs. 5,481 crore)

JK Lakshmi reported healthy performance during Q4FY21 led by better than expected sales volumes and higher realisations for the quarter.

Q4FY21 Earnings Summary

- The company almost operated at full capacity and achieved 99% capacity utilisation led by improved sales volume from both retail & Infra segment. Total sales volume grew by 17.6% YoY to 2.9MT that remained ahead of our expected sales volume of 2.8MT. Realisation also improved 5.9% YoY, 3.0% QoQ to Rs. 4,559/tonne (vs. I-direct estimate: Rs. 4,413/t). This led to revenue growth of 24.6% YoY to Rs. 1,322 crore (vs I-direct estimate: 1,226.2 crore)

- Total production cost per tonne increased 4.3% YoY led by higher raw material (up 14.5% YoY) & freight cost (up 7.8% YoY). However, better sales realisations led to 123bps YoY, 418bps QoQ expansion in margins. The company reported EBITDA margins of 20.3% (vs I-direct estimate: 14.8%) and EBITDA per tonne of Rs. 924/tonne (vs I-direct estimate: Rs. 653/t). Absolute EBITDA came in at Rs. 267.9 crore (up 32.6% YoY) that remained ahead of our estimated EBITDA of Rs. 181.4 crore

- After accounting for impairment loss of Rs. 30.9 crore, net profit for the quarter grew 35.5% YoY to Rs. 136.5 crore. Adjusted net profit growth were at 66.2% YoY on lower interest costs (down 29.5% YoY to Rs. 29.9 crore) and better margins

The progress on the Waste Heat Recovery Unit III Project at Sirohi is as per schedule and will be commissioned by Jul-21. Company's subsidiary Udaipur Cement Works is expanding its cement capacity by 2.5MT which is likely to be commissioned in Dec-23E. On completion of this expansion, consolidated capacity of JKLC and UCWL will enhance to 16.4MT. We will come out with a detailed report post the conference call.

Shares of JK LAKSHMI CEMENT LTD. was last trading in BSE at Rs.467.1 as compared to the previous close of Rs. 444.45. The total number of shares traded during the day was 57982 in over 2569 trades.

The stock hit an intraday high of Rs. 470.4 and intraday low of 446.75. The net turnover during the day was Rs. 26694728.

Source : Equity Bulls

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