ECONOMY

JK Lakshmi Cement Q4 Review – Decline In Fuel Cost Lead To Ebitda Increase: Centrum Broking

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

JK Lakshmi Cement Ltd. reported better-than expected operating results, with standalone Ebitda of Rs 2.76 billion (our estimate: Rs 1.99 billion), up ~89% QoQ/3% YoY.

The sequential increase in Ebitda was due to lower power and fuel cost (down 19% QoQ) and higher volume (up 28% QoQ to 3.14 million tonne).

As a result, Ebitda/tonne increased by Rs 283/tonne QoQ to Rs 879/tonne.

JK Lakshmi Cement took average price hike of Rs 25-30/bag in North and Rs 15-20/bag in East in April which has been sustaining which should be sufficient to offset 7-8% QoQ increase in power cost in Q1 FY23.

The company’s incremental capacity will come by FY24-end.

We reduce FY23E/FY24E Ebitda by 14%/5% to factor in higher power and freight cost, offset by higher cement prices to a certain extent.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.



Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button