JK Cement Q2 Review - On Right Track, But Valuation Expensive: Centrum Broking
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Centrum Broking Report
JK Cement Ltd. reported marginally lower-than-expected Ebitda of Rs 3.29 billion (our estimate: Rs 3.53 billion), down 20% YoY/18% QoQ and Ebitda/tonne of Rs 988, down 25% QoQ/32% YoY.
The underperformance was due to higher-than-expected operating cost. Overall cost of production/tonne was up 11% QoQ/12% YoY to Rs 4,523/tonne on account of increase in raw material, power and fuel, freight and other opex.
The ramp-up of new capacity helped it to increase total volume by 10% QoQ/18.5% YoY to 3.33 million tonne while blended cement (including clinker) realisation was up 2% QoQ/flat YoY at Rs 5,510/tonne.
JK Cement’s four million tonne per annum new expansion at Panna is on track and is expected to be commissioned by FY23-end.
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