Top Mutual Funds
- 22 Jul 2024
- ICICIdirect Research
-
Share
-
-
-
-
-
JK CEMENT - LOWER COST/TON LED TO IMPROVEMENT IN EBITDA/TON
JKCEMENT - 5125 Change: -120.70 (-2.30 %)News: Revenue increased by 1.6% YoY (-9.6% QoQ) to Rs 2807 crore, as volume growth of 5.9% YoY (-6.6% QoQ) was partially offset by lower realization (-4% YoY, -3.2% QoQ). EBITDA/ton was up 12.6% YoY to Rs 997/ton, primarily led by lower power & fuel cost/ton. However, EBITDA/ton declined by 7.2% QoQ, mainly on account of lower realisation & negative operating leverage. Subsequently, EBITDA increased by 19.2% YoY (-13.3% QoQ) to Rs 486.2 crore. PAT increased by 63.2% YoY (-15.6% QoQ) to Rs 185.3 crores.
View: Operational performance was better than expectations, mainly due to lower-than-expected power & fuel cost/ton (which declined by 22.1% YoY). Company’s volume growth remains strong over the last 3 years, led by timely capacity additions (7 mtpa added in last two years). Going forward also, we expect volume growth to remain healthy, led by demand pick-up, ramp-up of recent additions and further expansions (total capacity to reach 30 mtpa from 24.3 mtpa at present). Moreover, EBITDA/ton is also expected to improve led by further operational efficiencies & positive operating leverage (company had guided for 150-200 /ton cost savings in next 2 years).
Impact: Positive