ADVERTISEMENT

JK Lakshmi Cement Q1 Review - Higher Realisation Offsets Costs Escalations: ICICI Securities

JK Lakshmi Cement Q1 Review - Higher Realisation Offsets Costs Escalations: ICICI Securities

<div class="paragraphs"><p>A worker levelling the surface with cement mixture. (Source: freepik)</p></div>
A worker levelling the surface with cement mixture. (Source: freepik)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

JK Lakshmi Cement Ltd.’s Q1 FY23 standalone Ebitda of Rs 2.17 billion (flat YoY) was in line with our / consensus estimates. Volumes, including clinker sales, rose 5% YoY (fell 11% QoQ) while total cost/tonne increased sharply 25%/23% YoY/QoQ owing fuel cost inflation.

The cost inflation was largely offset by rise in blended realisation, which grew 20%/17% YoY/QoQ – significantly higher than expected.

As a result, standalone Ebitda/tonne declined by a meagre 4%/11% YoY/QoQ to Rs 779/tonne (our estimate: Rs 708/tonne), while consolidated Ebitda/tonne stood at a healthy Rs 847/tonne (versus Rs 917/tonne in Q1 FY22).

Click on the attachment to read the full report:

ICICI Securities JK Lakshmi Cement Q1FY23 Results.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.