ICICI Securities: JK Cement Q1 Review - Volume, Profitability To Improve With Expansion

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. 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 Q1 FY21 standalone Ebitda declined 29% YoY to Rs 2.15 billion, marginally better than our/consensus estimates of Rs 1.96 billion owing to lower costs.Total cost/tonne declined 4% YoY (our estimate 1% YoY) owing to reduction/deferment of discretionary costs. Hence, blended Ebitda/tonne was down only 7% YoY to Rs 1,219/tonne (our estimate Rs 1,125/tonne).We believe ramping-up of new capacity at Mangrol plant would not only provide additional volumes but also improve cost structure and profitability.Consolidated net debt is likely to peak out at Rs 24 billion in FY21E as JK Cement could generate additional operating cash flow of Rs 10 billion per annum from FY22E which would be sufficient for its future capex requirements..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: JK Cement Q1 Review - Volume, Profitability To Improve With Expansion

ICICI Securities: JK Cement Q1 Review - Volume, Profitability To Improve With Expansion

Choose a plan