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Motilal Oswal Report
J K Cement Ltd.’s Q1 FY21 result highlights market share gains for the company, led by approximately 50% capacity expansion in North India.
Volumes declined 19% YoY versus industry decline of approximately 30% YoY.
Q1 FY21 revenue/Ebitda/profit after tax at Rs 9.7 billion/Rs 2.2 billion/Rs 0.8 billion was down 27%/ 29%/ 49% YoY and was up 2%/ up 29%/ up 57% against our estimate.
Volumes declined for grey cement (including clinker) by 19% YoY to 1.59 million tonne and for white cement by 48% YoY to 0.18 million tonne.
Total volumes fell 24% YoY to 1.77 million tonne (our estimate 1.73 million tonne).
Blended realization fell 5% YoY to Rs 5,464/tonne (down 1% QoQ) (our estimate Rs 5,481/tonne) on a higher proportion of grey cement (90% versus 85%) in the sales mix.
Total cost per ton declined 4% YoY (flat QoQ) to Rs 4,245/tonne and was 6% beat on our estimate due to a 27% YoY fall in other expenses from lower fixed overheads.
However, decline was partly offset by negative operating leverage and the consumption of higher cost petcoke inventory.
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