JK Cement Posts Yet Another Strong Quarter; Rerating To Continue: ICICI Securities
Gravel and sand are loaded onto a conveyor belt at the concrete plant. (Photographer Jack Atley/Bloomberg)

JK Cement Posts Yet Another Strong Quarter; Rerating To Continue: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

JK Cement Ltd.’s Q3 FY21 standalone Ebitda at Rs 4.5 billion (up 62% YoY), was significantly better than our/consensus estimates led by better realisation and lower costs.

Grey cement volumes grew 25% YoY while blended Ebitda/tonnee rose 30% YoY to Rs 1,417/tonne (our estimate Rs 1,247/tonne).

The company announced greenfield expansion of four million tonne at Panna, Madhya Pradesh, with split grinding unit in Uttar Pradesh, at a capex of Rs 30 billion ($103/tonne).

Given strong operating cash flow of more than Rs 10 billion per annum, net debt is unlikely to increase from the current Rs 20 billion even after factoring above expansion.

Click on the attachment to read the full report:

ICICI Securities JK Cement Q3FY21 Results Update.pdf

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