ICICI Securities: JK Lakshmi Cement Delivers Strong Q1 Return Ratios Despite Lower Ebitda/Tonne

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.JK Lakshmi Cement Ltd.’s Q1 FY21 standalone Ebitda at Rs 1.43 billion (down 16% YoY) was in-line with our consensus estimates.Total volumes (including clinker) declined 18% YoY; while total cost per tonne fell 4% YoY on strict control over fixed and discretionary overheads.However, blended realisation was flat QoQ (down 3% YoY) impacted by lower ready mix concrete sales and higher clinker sales YoY.Accordingly, Ebitda/tonne grew only 3% YoY to Rs 752/tonne (our estimate Rs 789/tonne) amongst the lowest within peers.Given the likely stability in North prices, JK Lakshmi Cement could generate operating cash flow of approximately Rs 5 billion per annum, which could be sufficient for any future expansion, capex needs..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: JK Lakshmi Cement Delivers Strong Q1 Return Ratios Despite Lower Ebitda/Tonne

ICICI Securities: JK Lakshmi Cement Delivers Strong Q1 Return Ratios Despite Lower Ebitda/Tonne

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