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- 03 Nov 2023
- ICICI Securities
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NET REALIZATION IMPROVED MARGINALLY
JKLAKSHMI - 991 Change: -9.95 (-0.99 %)News: Consolidated revenue increased by 14.6% YoY (-9% QoQ) to Rs 1574.5 crore, mainly led by 13.8% YoY (-10.2% QoQ) growth in cement sales volumes to 2.9 million tonnes (mt). Net realization improved marginally by 0.7% YoY (+1.3% QoQ) to Rs 5471/ton. EBITDA/ton improved by 16% YoY (+23% QoQ) to Rs 755/ton primarily led by decline in power & fuel cost and positive operating leverage. Thus, on account of better volume growth and improvement in margins, EBITDA increased by 32.5% YoY (+10.7% QoQ) to Rs 217.3 crore. PAT was up by 55.2% YoY (+20.2% QoQ) to Rs 95.9 crore. H1FY24 consolidated volume growth stands at 9.4% YoY to 6.1 mt with EBITDA/ton at Rs 680/ton (vs Rs 757/ton in H1FY23).
Views: Overall operational performance during the quarter was broadly in-line with expectations. EBITDA/ton during 2HFY24 is expected to improve further (to ~Rs 850/ton vs Rs 680/ton in H1FY24) led by lower power & fuel cost on YoY basis. Company’s volume growth is also expected to pick-up post the commissioning of 1.5 MT clinker (with 2.5 MT cement) under its subsidiary (Udaipur Cement Works – UCW). The clinker/cement units are expected to be commissioned by 3QFY24/2QFY25. Further, company’s focus on improving sales mix (towards premium products), market mix, operational cost efficiencies along with benefit of positive operating leverage would help in further improvement in EBITDA/ton by FY25E.
Impact: Positive