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Centrum Broking Report
JK Lakshmi Cement Ltd. reported better-than expected operating results, with standalone Ebitda of Rs 2.76 billion (our estimate: Rs 1.99 billion), up ~89% QoQ/3% YoY.
The sequential increase in Ebitda was due to lower power and fuel cost (down 19% QoQ) and higher volume (up 28% QoQ to 3.14 million tonne).
As a result, Ebitda/tonne increased by Rs 283/tonne QoQ to Rs 879/tonne.
JK Lakshmi Cement took average price hike of Rs 25-30/bag in North and Rs 15-20/bag in East in April which has been sustaining which should be sufficient to offset 7-8% QoQ increase in power cost in Q1 FY23.
The company’s incremental capacity will come by FY24-end.
We reduce FY23E/FY24E Ebitda by 14%/5% to factor in higher power and freight cost, offset by higher cement prices to a certain extent.
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