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JK Lakshmi Cement - Deleveraging Exercise, Waste Heat Recovery System To Provide A Boost: Anand Rathi

JK Lakshmi Cement - Deleveraging Exercise, Waste Heat Recovery System To Provide A Boost: Anand Rathi

<div class="paragraphs"><p>Laborers unload cement bags from freight trains at the Shakur Basti station in New Delhi. (Photographer Prashanth Vishwanathan/Bloomberg)</p></div>
Laborers unload cement bags from freight trains at the Shakur Basti station in New Delhi. (Photographer Prashanth Vishwanathan/Bloomberg)

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.

Anand Rathi Report

Lockdown-curbed softer demand and higher input costs hit JK Lakshmi Cement Ltd.’s QoQ performance.

The low base and more clinker sales led to cement sales volumes rising a robust 40% YoY to 2.66 million tonnes.

Non-cement revenue grew 169% YoY to 780 million.

JK Lakshmi Cement's Ebitda grew 51% YoY to Rs 2.2 billion; per ton Ebitda, 8% YoY to Rs 813 (though QoQ down 12%).

Fuel stocks for three to four months have been built up, where fuel consumption cost is expected to rise 14% QoQ and diesel cost 27% QoQ.

The eight megawatt Sirohi waste heat recovery system is expected to commence by Q3 FY22 offering some respite to high costs.

Debottlenecking was completed at Udaipur Cement Works, expanding clinker/cement capacities to 1.5 million tonnes/2.2 million tonnes.

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Anand Rathi JK Lakshmi Cement Company Update.pdf

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