JK Lakshmi Cement Q3 Results Review - Flattish QoQ Profitability, Fair Valuation: Dolat Capital

Dolat Capital Report

JK Lakshmi Cement Ltd. reported revenue and volume in line, however realization, Ebitda, Ebitda/tonne and adjusted profit after tax below estimates.

JK Lakshmi Cement on consolidated basis posted +21.5%/ +13.7% YoY/ QoQ growth in revenue to Rs 15.6 billion led by +10.3% YoY in realization/tonne to Rs 5,426 (-0.1% QoQ) coupled with +10.1% YoY in volume to 2.88 million tonne (+13.8% QoQ).

Ebitda/adjusted profit after tax reported +6.7%/ +20.1% YoY to Rs 1.9 billion/ Rs 770 million.

We broadly maintain revenue estimates for FY23E but decrease Ebitda/ adjusted profit after tax by 7.5%/ 8.8% for FY23E factoring nine months-FY23. However, we broadly maintain revenue/ Ebitda/ adjusted profit after tax estimates for FY24E/ FY25E.

We expect 12.0%/ 11.6%/ 16.4% revenue/ Ebitda/ adjusted profit after tax compound annual growth rate over FY22-25E led by 6.1%/ 6.5%/ 10.7% volume growth and 12.4%/ 0.0%/ 0.0% cement realisation growth in FY23E/ FY24E/ FY25E on consolidated basis.

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