|
JK Lakshmi Cement
hosted a conference call on February 13, 2024. In the conference call the
company was represented by Mr Arun Kumar Shukla-President & Director and Mr
Sudhir Bidakar-CFO.
Key takeaways of the call
Trade sales stood at 58%
of the total sales.
Lead distance stood at
377 kms in the quarter.
Blended cement is 65%
of the total sales.
Premium cement sales
are 25% of trade sales and 12% of total volumes.
Value added products
contribution stood at Rs 134 cr towards revenue with margins of around 5%. Of
Rs 134 crore revenue, revenue from RMC stood at Rs 67 crore.
UCWL: The UCWL is
operating at 75% capacity utilization and the new line is expected to operated
at 60% in 1st year (FY2025) and 75% capacity utilization in second
year(FY2026).
The company has enough
capacity of lime at its mine in UCWL and will be sufficient for next 45-50
years.
Power
and Fuel:
In Q3FY2024
Kcal cost was Rs 1.78 /kcal and expects it to be around 1.7/kcal in Q4FY2024.
With respect to Alternate fuel mix, the
company has accomplished TSR of 11% currently in Sirohi and plans to increase
it to 13% in phase I. Further the company plans to increase the same to 16-17%
in phase II.
Green power in Q3 stood at 70% for Durg
facility and at company level stood at 44%. The company expects marginal
increase in green power in Q4 and targets 50% in near term and take forward
from there.
Expansion:
The company plans to commission the 2.5 million
tonnes grinding unit in UCWL by Q4 FY2024.
With respect to railway sliding the company
has got the approval and is expected to commission 1st phase of it
by Sep 2024 and the balance by next 12-18 months post phase I.
The company further plans to set up
grinding units with a total capacity of 4.6 MT (Uttar Pradesh, Bihar and Jharkhand)of which three
units will be of 1.2 MT and one of 1 MT. These will be completed in next 3 years.
Debt: At standalone basis gross debt as on Dec 31 ,2023 stood at Rs720 crore and net debt stood at Rs 50 crore and on
consolidate basis the company had gross debt as on Dec 31,2023 at Rs 2000 crore
and net debt at Rs 1150 crore.
The company plans to raise around Rs 2500
crore in next three years for expansion of which Rs 1750 crore will be towards
Durg, Rs 250 crore towards railway sliding and Rs 500 crore towards AFR,
solar and WHRS.
Peak debt is expected to be around Rs 3500
crore and Net debt/EBITDA of less than 2.5 times.
Capex:
In the first 9M of FY2024, the company has
incurred CAPEX of Rs 250 crore in JK Lakshmi and Rs 450 crore in Udaipur
Cement.
In Q4FY2024, the company will be incurring
around Rs 250 crore towards railway sliding and in Udaipur Cement around Rs 300
crore.
For further expansion the company will be
incurring Rs 4000 crore towards various projects. Of the Rs 4000 crore Rs 2500
crore will be incurred towards Durg project, Rs 1000 crore towards North
expansion and Rs 500 crore towards AFR, WHRS and solar projects.
Outlook:
Volume growth was
around 8% for the company in Q3FY2024 as there was some disruption in some
geographies in which the company operates. The company expects volume growth to
be around 6% for the industry and around 8-10% for the company in Q4FY2024.
Further, the company expects volume growth for the company to be better than
the industry as new capacities are coming to stream under
UCWL(double digit growth).
Prices did soften in
January and further in February.
The company expects
outsourced volumes to come down going forward.
Dividend: The board has approved interim dividend of Rs 2 per equity share of
face value Rs 5/ per share.
|