JK Cements Q4FY22 PAT down -6.85% at Rs201.13 crore on sharp spike in power and fuel costs

23 May 2022 , 01:19 PM

JK Cements Ltd reported 1.17% increase in revenues yoy for the Q4FY22 quarter on consolidated basis at Rs2,351.16 crore. On a sequential basis, revenues were up for the quarter by 15.79%.

Full year FY22 revenues were up 20.97% at Rs7,991 crore. For Q4FY22, JK Cements witnessed growth in volumes and prices in select geographies.

The cash from operations for FY22 almost halved due to a sharp spike in inventories and other assets amid supply chain constraints.

The coverage ratios deteriorated during the quarter. Operating margins were sharply lower from 20.82% to 16.09% on a yoy basis.

The consolidated net profit for Q4FY22 was down -6.85% at Rs201.13 crore. The net profits was higher by 40.94% on a sequential basis.

The biggest reason for the fall in profits was the spike in cost of inventory holding and of power and fuel costs.

Higher inventories meant more funds locked in the working capital cycle, which also spiked finance costs. Cost of Power and fuel were up 39.2% yoy while freight costs were also up by 10%. Net margins were 10.78% in Q4FY22 compared to 15.96% in Q4FY21 and 10.12% in Q3FY22.

Financial highlights for Mar-22 compared yoy and sequentially

	JK Cement Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 2,351.16	₹ 2,134.15	10.17%	₹ 2,030.49	15.79%
Net Profit (Rs cr)	₹ 201.13	₹ 215.91	-6.85%	₹ 142.71	40.94%
Diluted EPS (Rs)	₹ 25.81	₹ 27.74		₹ 18.14
Net Margins	8.55%	10.12%		7.03%