JK Lakshmi Cement Ltd. share price target

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...

Background: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 11.5 MTPA. JKLC derives sales volume from the northern and western regions. The company has market share of ~6-7% in the northern region and ~9-10% in western regions. JKLC is on the spree of capacity expansion; recently...

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...

Background: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 10.9 MTPA. JKLC derives sales volume from the northern and western regions. The company has market share of ~6-7% in the northern region and ~9-10% in western regions. JKLC is on the spree of capacity expansion; recently...

JK Lakshmi Cement's Q4FY18 results were marginally below our estimates. The beat at topline level led to lower-than-expected profitability. Revenues increased 11.2% YoY to | 897.0 crore (below I-direct estimate of | 1,021.4 crore) mainly led by 14.1% YoY increase in realisation to | 4,019/t (vs. I-direct estimate of | 4,095/t) while volumes declined 2.5% YoY to 2.2 MT (vs. our estimate of 2.02 MT) EBITDA margin increased 242 bps YoY to 11.3% due to decline in raw material cost (down 14.4% YoY), improvement in power...

JK Lakshmi Cement (JKLC) has reported a soft operational performance in 4QFY18 mainly on account of lower-than-expected sales volume and cost pressure. While EBITDA expanded by 42% YoY and 7% QoQ to Rs1.02bn (vs. our estimate of Rs1.16bn), EBITDA/tonne stood at Rs454 compared to Rs312 and Rs447 in 4QFY17 and 3QFY18, respectively. Operating cost per tonne surged by 11% YoY and 1% QoQ to Rs3,565 mainly led by sharp rise in freight cost/tonne (+16% YoY and +4% QoQ) and Power & Fuel cost/tonne (+8% YoY and -1% QoQ). Sales volume stood at 2.23mnT (-2.5% YoY and +6% QoQ). While Durg sales volume grew by 18% YoY to 0.63mnT, Northern volume de-grew during the quarter. Net profit stood at Rs334mn compared to Rs209mn...