JK Cement Q1 Review - Market Share Gains To Drive Earnings: Motilal Oswal
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Motilal Oswal Report
J K Cement Ltd. continues to gain market share, with volumes up 71% YoY in Q1 FY22, led by a ~40% capacity expansion.
We expect this to continue over the next four to five years asJK Cement is now setting up a four million tonnes per annum greenfield plant (commissioning by Q1 FY24) in Central India.
This plant should improve the regional mix for North and Central India to ~85%.
Standalone revenue / Ebitda / adjusted profit after tax rose 69%/86%/168% YoY to Rs 16.3 billion/Rs 4.0 billion/Rs 2.1 billion in Q1 FY22, beating our estimate by 4%/21%/27% – driven by higher grey cement realisation (up 1% YoY) at Rs 4,679/tonne (up 6% QoQ) versus our estimate of Rs 4,536/tonne.
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