JK Lakshmi Cement Ltd. share price target

to INR1.3b (higher than our est. of INR1.2b) due to higher volumes, with margins flat YoY at 11.2%. Tax rate stood at 24.7% v/s -10.7% in the year ago period. Thus, PAT increased 17% YoY to INR433m (v/s est. of INR356m). Management commentary: (1) JKLC sold 9.65lakh tonnes of clinker in FY19. The company plans to reduce the sales of clinker in future. (2)Work on the 20MW Thermal Power plant in Durg and the grinding unit in Odisha of 0.8mt is likely to be commissioned by 2QFY20. (3) Raw material cost for the quarter was higher due to clinker purchase. (4) Prices declined in the Gujarat market in 4QFY19....

ICICI Securities Ltd | Retail Equity Research JK Lakshmi Cement reported a mixed set of Q3FY19 numbers. Net sales increased 11.7% YoY to | 935 crore (vs. I-direct estimate of | 895 crore), driven by 9% volume growth to ~ 2.3 MT (vs. I-direct estimate of 2.2 MT). Realisations were at | 4056/t (marginally lower than I-direct estimate of | 4083/t) On the margin front, EBITDA margins fell 78 bps YoY to 10.5% (below I-direct estimate of 13.1%) due to higher freight and power &...

JK Lakshmi Cement (JKLC) is part of JK group mainly focused in North, West and Eastern regions of India with a consolidated capacity of 12.5MT. Q2FY19 revenue grew 9.6%YoY aided by healthy volumes (12.5%YoY). However, realisation de-grew 2.6%YoY, resulted in 150bps margin decline. Total cost/Ton declined by 0.9%YoY due to reduction in freight (-12%YoY) and other expenses (-3.3%YoY) which has offset by 11% surge in fuel cost. Freight cost declined on account of reduction in lead distance. Full benefit from relaxation in axle load will reduce cost further....

2% QoQ) to INR3,572 (our estimate: INR3,716) due to lower freight cost/t (on the back of a reduction in lead distance). Thus, EBITDA/ton of INR431 (15% YoY, +5% QoQ) was higher than our estimate of INR316/t. EBITDA declined 4% YoY to INR916m (our estimate: INR642m), with the margin at 10.8% (-1.53pp YoY, +0.6pp QoQ). Tax rate stood at 35.4% v/s 30% in the...

JK Lakshmi Cement's Q2FY19 results were better than our estimates. Revenues increased 9.6% YoY to | 851.4 crore (above I-direct estimate of | 789 crore) led by 12.6% volume growth to 2.13 MT (vs. I-direct estimate of 1.97 MT) and 2.6% YoY decline in realisation to | 4,003/t (vs. I-direct estimate of | 4,010/t) The EBITDA margin contracted 153 bps YoY to 10.8% (vs. I-direct estimate of 9.6%) due to higher fuel & power cost led by higher...

Better Operating Performance on Lower Freight Cost JK Lakshmi Cement (JKLC) has reported a better-than-expected performance in 2QFY19 with its EBITDA coming in at Rs916mn (-4% YoY and -2% QoQ) vs. our estimate of Rs824mn led by unexpected decline in freight cost (-1% YoY and -18% QoQ) owing to ~30kms reduction in lead distance. EBITDA/tonne stood at Rs431 vs. Rs505 and Rs410 in 2QFY18 and 1QFY19, respectively. While operating cost/tonne stood at Rs3,572 (-0.9% YoY and -1.7% QoQ), input cost/tonne increased by 7% YoY and 2% QoQ to Rs1,944 mainly due to increase in Power & Fuel cost. Average NSR declined by 2.6% YoY and 0.9% QoQ at Rs4003/tonne, while sales volume grew...

JK Lakshmi Cement's (JKLC) results were above estimates, with EBITDA at Rs916mn vs. our estimate of Rs654mn and OPM of 10.8% vs. our estimate of 8%, largely driven by a steep decline in freight costs (down 12.2% yoy/11.5% qoq) and higher sales volumes. Sales volumes were up 12.6% yoy to 2.13mt (Emkay est: 2mt), while realization at...

JK Lakshmi Cement (JKLC) is part of JK group mainly focused in North, West and Eastern regions of India with a consolidated capacity of 12.5MT. Q1FY19 revenue grew mere 2.5%YoY due to flat growth in volumes and 2.5% YoY growth in realisation. Low realisation was due to pricing pressure witnessed in North in the nontrade segment and the competition impacted volumes also. Further, surge in fuel and freight cost caused EBITDA margin to decline 320bps YoY. Pet coke price is at all-time high, Rs.8,100/ton Vs Rs.6,700 YoY. Commissioning of 20MW thermal power plant by 4QFY19 will provide...

ICICI Securities Ltd | Retail Equity Research JK Lakshmi Cement's Q1FY19 results were below our estimates. Revenues increased 2.5% YoY to | 923.4 crore (below I-direct estimate of | 954.1 crore) mainly led by 1.7% YoY increase in realisation to | 4,038/t (vs. I-direct estimate of | 3,994/t) and 0.7% YoY increase in volumes to 2.3 MT (vs. I-direct estimate of 2.4 MT) EBITDA margin declined 319 bps YoY to 10.2% due to higher power & fuel (up 12% YoY) and freight costs (up 14.8% YoY). EBITDA/t...