JK Cement Ltd – Q3 FY23 Results Update

Basically, JK Cement Ltd is into cement business. JK Cement produces grey cement, white cement and water proof. In addition, Co manufactures grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India.

(A) Quarterly Results – QoQ & YoY

(B) Key Operational Parameters – QoQ

JK Cement Ltd - Key Margins Quarter Q3FY23

(C) Shareholding changes – QoQ

JK Cement Ltd - Shareholding % Q3FY23

(D) Sales Classification for Q3FY23

JK cement Ltd - Segment wise revenue breakup Quarter on Quarter

During the quarter, JK Cement witnessed strong revenue growth in Grey Cement Space. However, In White Cement Business the revenue was mute.

(E) Q3FY23 – Key Highlights from Management Discussion

(i) Business Performance and Updates

  • -Sales grew by 20% QoQ and 9% YoY, EBITDA Degrew by steep ~33% due to Spending on Branding Activities for Panna- Plant
  • PAT fell by 41%, Due to a Rise in Logistics Cost and Energy Cost by 7% and 26% YoY
  • Net debt/EBITDA was at 1.06x and net debt to equity stood at 0.32x
  • -Short Term Borrowing stood at 350-400Cr
  • -JK Cement intended to raise prices by Rs15-20 in the north and south, however owing to non-sustainability, prices were decreased to Rs5/bag only

(ii) Future Outlook

  • Arrival of White cement Players may disturbs its market share. As a result, they want to grow their market share.
  • Capex of ₹1400 Cr in FY24 will stay unchanged.
  • After Panna-Plant Operational, Lead Distance will decrese by 8-10% (~30-35Km)
  • Aiming of 50% utilization at PANNA PLANT. Furthermore, timely completion of Panna’s 4MTPA Capex will allow for incremental Demand services.
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References:  valueresearchonline.com, Industry’s Publications, News Publications, Mutual Fund Company.

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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