JK Cement Q3 Results Review - Profit Zooms Multifold; Beats Estimate: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.JK Cement Ltd. delivered an excellent set of numbers that exceeded estimates on all fronts. The company’s standalone revenue stood at Rs 27.8 billion (+19.0% YoY, +8.3% QoQ) versus our estimate of Rs 26.0 billion. This growth was led by a sharp uptick in realisations and healthy growth in volumes. Total volume for the quarter stood at 4.7 million tonnes per annum (+16.6% YoY, 3.7% QoQ) vis a vis our estimate of 4.4 mtpa. Grey cement volume stood at 4.15 mtpa (+14% YoY) while white cement volume grew to 0.42 mtpa (+10.5% YoY). Blended Realisation for the quarter came in at Rs 6,086 (+2.1% YoY, +4.5% QoQ). Ebitda for the quarter more than doubled to Rs 6.1 billion vs our estimate of Rs 5.3 billion. Accordingly, Ebitda/tonne also improved significantly to Rs 1,330 led by cost savings in power and fuel, raw material, and other expenses. Capacity utilisation for the quarter was 77%. Blended cement stood at 66% of the mix while trade sales constituted 62% of the total portfolio. The share of premium products stood at 12%. JK Cement expects to bring the capacity to 30 mtpa by FY26 from the current 22 mtpa at a total capex of Rs 43 billion till FY26E. We forecast a strong revenue/Ebitda/profit after tax compound annual growth rate of 14%/31%/40% over FY23-FY26E on the back of a consistent volume growth trajectory and sustained focus on expansion as well as operational efficiencies. We roll over our estimates to FY26E valuing the company at 14 times enterprise value/Ebitda to arrive at a target price of Rs 4,630. We maintain our stance with a 'Buy' rating on the stock. Key downside risk: Unexpected delays in expansion, price roll backs, input cost pressures etc..Click on the attachment to read the full report:.JK Cement Q3 Results: Profit Up Sevenfold, Revenue Rises 21%.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JK Cement Q3 Results Review - Profit Zooms Multifold; Beats Estimate: Systematix

JK Cement has showcased an exemplary growth trajectory through its right strategies and thrust on efficiency.

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