JK Lakshmi reported healthy set of numbers for Q4FY18; though EBITDA was below estimates, lower tax led to PAT beat. The revenue (net of excise duty in the base quarter) grew by 11.2% yoy to Rs897cr, broadly in-line with estimates. Savings in the raw material cost aided the company to report 41.5% yoy jump in the EBITDA to Rs101.3cr (estimate of Rs110cr). EBITDA margin expanded by 242bps yoy to 11.3%. Further, aided by lower tax outgo, company reported 61.4% yoy jump in the reported profit to Rs33.7cr, 12% ahead of the estimate of Rs18cr.
Raw material cost as percent of net sales declined by 650bps yoy.
On account of all time high pet coke prices, power cost as percent of net sales jumped by 361bps yoy.
Further, high diesel prices and ban of pet coke consumption in three states i.e. Rajasthan, Haryana & UP during last week of October 2017 till last week of January 2018 impacted the company adversely. Pet coke consumption in Kiln is now allowed, but the usage in power generation continues to remain banned.
Company has improved its power consumption to 69 Kwh/MT in Q4FY18 from 71 Kwh/MT in Q4FY17.
Moreover, company has indicated that the work on 20 MW Thermal Power Project is progressing as per schedule and is likely to be commissioned in 3QFY19E. The commissioning will significantly bring down the costs of Durg unit.
Company has approved raising of ~Rs500cr by way of issue of securities, convertible/non-convertible, with or without warrant, subject to shareholders approval.
Company has recommended a dividend of Rs0.75 per equity share for FY18.
JK Lakshmi Cement Ltd is currently trading at Rs. 383.10, up by 0.15 points or 0.04% from its previous closing of Rs. 382.95 on the BSE.
The scrip opened at Rs. 380 and has touched a high and low of Rs. 385 and Rs. 370.35 respectively. So far 41,718 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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