2 September 2020 J K Cement (JKCE)s 1QFY21 result highlights market share gains for the company, led by ~50% capacity expansion in North India. While we raise our FY21E EPS by 10% to factor lower fixed costs, our FY22 estimates are largely unchanged. We reiterate on a 17% EPS CAGR over FY2022E, driven by capacity-led volume growth. 1QFY21 revenue/EBITDA/PAT at INR9.7b/INR2.2b/INR0.8b was down 27%/ 29%/ 49% YoY and was +2%/ +29%/ +57% against our estimate. Volumes declined for grey cement (incl. Total volumes fell 24% YoY to on a higher proportion of grey cement (90% v/s 85%) in the sales mix. Total cost per ton declined 4% YoY (flat QoQ) to INR4,245/t and was 6% beat on our estimate due to a 27% YoY fall in other expenses from lower fixed overheads. However, decline was partly offset by negative operating leverage and the consumption of higher cost petcoke inventory.