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- 23 Jan 2024
- ICICI Securities
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VOLUME GROWTH REMAINS STRONG; EBITDA/TON IMPROVES SHARPLY ON BETTER REALISATIONS & LOWER ENERGY COST
JKCEMENT - 5202 Change: 83.00 (1.62 %)News: Revenue increased by 20.5% YoY (+6.6 QoQ) to Rs 2934.8 crore, led by 13.5% YoY (+3.7% QoQ) growth in total cement sales volumes to 4.70 million tonnes (mtpa) and 6.1% YoY (+2.8% QoQ) improvement in blended realisation. Grey cement volume increased by 14% YoY (+6% QoQ) to 4.15 mtpa and white cement volumes increased by 13% YoY (+8% QoQ) to 0.55 mtpa. EBITDA increased sharply by 152.7% YoY (+33.9% QoQ) to Rs 625.1 crore as EBITDA/ton improved sharply to Rs 1329 (vs Rs 597/ton in Q3FY23 and Rs 1029/ton in Q2FY24). Thus, on account of significant improvement in revenues and margins, PAT was up sharply on YoY basis to Rs 283.8 crore (vs Rs 37.2 crore in Q3FY23). For 9MFY24, revenue is up 21.7% YoY (mainly led by 20% volume growth) with EBITDA/ton at Rs 1081/ton (vs Rs 834/ton in Q3FY23).
Views: Operational performance improved significantly on YoY basis led by strong volume growth, better realisations and lower energy cost. With Ujjain grinding unit of 1.5 mtpa already commissioned during the quarter and Prayagraj grinding (2 mtpa) expected by Sept 2024, total grey capacity would reach 24.2 mtpa by Q2FY25E. Another 6 mtpa expansion plan has already been approved by the company, targeting total capacity of 30 mtpa. Healthy volume growth, benefit of lower pet-coke prices, increasing favourable power mix and positive operating leverage is expected to be witnessed in coming period. Moreover, addition of new capacities ensures healthy volume growth for the company in the longer term.
Impact: Positive