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ICICI Securities Report
JK Lakshmi Cement Ltd.'s Q1 FY21 standalone Ebitda at Rs 1.43 billion (down 16% YoY) was in-line with our consensus estimates.
Total volumes (including clinker) declined 18% YoY; while total cost per tonne fell 4% YoY on strict control over fixed and discretionary overheads.
However, blended realisation was flat QoQ (down 3% YoY) impacted by lower ready mix concrete sales and higher clinker sales YoY.
Accordingly, Ebitda/tonne grew only 3% YoY to Rs 752/tonne (our estimate Rs 789/tonne) amongst the lowest within peers.
Given the likely stability in North prices, JK Lakshmi Cement could generate operating cash flow of approximately Rs 5 billion per annum, which could be sufficient for any future expansion, capex needs.
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