Q4FY21 Result Update - JK Cement - ICICI Direct

JK Cement's performance remained weak operationally in Q4FY21. While sales volume grew 45.8% YoY 3.89 MT (vs I-direct estimate: 3.87 MT), realisations dipped 4.7% YoY (down 5.1% QoQ) to Rs. 5,271/t that restricted revenue growth to 38.8% YoY at Rs. 2052.5 crore (vs. I-direct estimate: Rs. 2151.1 crore). Grey cement volumes were up 48.1% YoY to 3.5 MT whereas white cements sales grew 29.4% YoY to 0.39 MT. Cost of production broadly stayed flat QoQ at Rs. 4143/t. However, lower realisations led to 204 bps YoY drop in EBITDA margins (down 411 bps QoQ). EBITDA/t was at Rs. 1,128/t vs Rs. 1,297/t last year and Rs. 1416/t last quarter. PAT of Rs. 63.4 crore also stayed far lower than estimate of Rs. 261.2 crore as the company booked impairment loss of Rs. 166.9 crore w.r.t. its UAE subsidiary. On the b/s front, gross debt has increased from Rs. 2,594 crore last year to Rs. 2,841 crore in FY21 owing to capital expenditure. Post addition of 4.2 MT cement capacity in FY21, the company would now set-up 4 MT integrated grey cement capacity at Panna MP with split grinding unit in Uttar Pradesh and 12 MW WHRS plant for capex of Rs. 2970 crore (i.e. at $103/t). Completion is likely by H2FY24E.

For details, click on the link below: Link to the report

Shares of J.K.CEMENT LTD. was last trading in BSE at Rs.2774.95 as compared to the previous close of Rs. 2788.85. The total number of shares traded during the day was 2240 in over 447 trades.

The stock hit an intraday high of Rs. 2816.95 and intraday low of 2766.55. The net turnover during the day was Rs. 6238958.

Source : Equity Bulls

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