There has been continuous review of the cash flow position with a reduction in the outstanding amount. Further, inventories of all the input materials, semi-finished foods and cement at all the locations and inward/outward movement of materials have been closely monitored.
Further, the company informed the exchanges Friday that Grey Cement sales volumes picked up gradually. However, there was a drop of ~20% in the sales volumes during Q1FY21 as compared to Q1FY20.
In the case of White Cement business, recovery is slow resulting around a 50% drop in the sales volumes during the Q1FY21 as against same quarter of last year.
The company has a liquidity of around Rs1000cr. The company further raised Rs250cr by issuing 2500 Nos of Secured, irredeemable, listed Non-Convertible Debebtures (NCDs) of Rs10lacs to Banks and Mutual Funds. The said NCDs have been listed with wholesale debt market segment of BSE Ltd.
The present cash balance is to the tune of Rs1250cr which is sufficient to meet company's obligations and any unforeseen eventuality in future conserving cash is essential during the prevailing circumstances, therefore, the overall capital expenditure during the current financial year would be restricted to Rs700cr (including balance expenditure on the 4.2 million tons capacity expansion). Rs100cr will be from internal accruals and balance would be from tied up borrowed funds.
The company had temporarily suspended operations across locations of its units located in five states on account of the lockdown announced by the State and Central Government on March 23, 2020, after the outbreak of Covid-19 Pandemic.
It later resumed operations from April 24, 2020, in a phased manner in compliance with the guidelines issued by the various State and District Administrations. However, this had an adverse impact on the revenues of the company.
JK Cement is currently trading at Rs1,515.80 up by Rs19.15 or 1.28% from its previous closing of Rs1,496.65 on the BSE.