Capitaline

Results 28-Jul-23

Analysis

JK Lakshmi Cement

Net sales up 4.6% YoY to Rs 1730.3 crore in Q1FY2024

On consolidated basis

Quarter ended June 2023 compared with Quarter ended June 2022.

Net sales (including other operating income) of JK Lakshmi Cement has increased 4.60% to Rs 1730.25 crore.

Operating profit margin has declined from 15.53% to 11.34%, leading to 23.60% decline in operating profit to Rs 196.23 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 14.28% to 14.58%. Purchase of finished goods cost rose from 4.22% to 8.46%. Employee cost increased from 6.16% to 6.37%. Other expenses fell from 59.81% to 59.06%. Power and Oil fuel cost fell from 27.45% to 26.90%. Freight charges rose from 19.83% to 20.17%.

Other income rose 61.07% to Rs 11.13 crore. PBIDT fell 21.38% to Rs 207.36 crore. Provision for interest fell 7.70% to Rs 33.1 crore.

PBDT fell 23.54% to Rs 174.26 crore. Provision for depreciation fell 0.41% to Rs 55.72 crore.

Profit before tax down 31.06% to Rs 118.54 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 38.75 crore, compared to Rs 56.87 crore. Effective tax rate was 32.69% compared to 33.08%.

Minority interest decreased 66.07% to Rs 1.32 crore. Net profit attributable to owners of the company decreased 29.42% to Rs 78.47 crore.

Promoters’ stake was 46.31% as of 30 June 2023 ,compared to 46.31% as of 30 June 2022 .

Full year results analysis.

Net sales (including other operating income) of JK Lakshmi Cement has increased 19.03% to Rs 6451.5 crore.

Operating profit margin has declined from 17.54% to 13%, leading to 11.78% decline in operating profit to Rs 838.71 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 15.08% to 14.40%. Purchase of finished goods cost rose from 5.30% to 6.32%. Employee cost decreased from 6.64% to 5.97%. Other expenses rose from 55.58% to 60.39%. Power and Oil fuel cost rose from 23.59% to 29.16%. Freight charges fell from 20.12% to 19.38%.

Other income fell 15.81% to Rs 57.52 crore. PBIDT fell 12.05% to Rs 896.23 crore. Provision for interest fell 6.18% to Rs 133.4 crore. Loan funds declined from Rs 1,886.54 crore as of 31 March 2022 to Rs 1,879.73 crore as of 31 March 2023. Inventories rose to Rs 841.60 crore as of 31 March 2023 from Rs 581.00 crore as of 31 March 2022. Sundry debtors were higher at Rs 65.42 crore as of 31 March 2023 compared to Rs 35.20 crore as of 31 March 2022. Cash and bank balance declined from Rs 572.94 crore as of 31 March 2022 to Rs 338.96 crore as of 31 March 2023. Investments declined from Rs 652.04 crore as of 31 March 2022 to Rs 526.54 crore as of 31 March 2023.

PBDT fell 13% to Rs 762.83 crore. Provision for depreciation rose 2.17% to Rs 228.33 crore. Fixed assets increased to Rs 4,339.58 crore as of 31 March 2023 from Rs 3,714.59 crore as of 31 March 2022. Intangible assets increased from Rs 72.32 crore to Rs 77.65 crore.

Profit before tax down 18.19% to Rs 534.50 crore. Share of profit/loss was 50% higher at Rs -0.02 crore. Provision for tax was expense of Rs 165.37 crore, compared to Rs 148.76 crore. Effective tax rate was 30.94% compared to 23.75%.

Minority interest decreased 25.18% to Rs 10.49 crore. Net profit attributable to owners of the company decreased 22.64% to Rs 358.62 crore.

Equity capital stood at Rs 58.85 crore as of 31 March 2023 to Rs 58.85 crore as of 31 March 2022. Per share face Value remained same at Rs 5.00.

Promoters’ stake was 46.31% as of 31 March 2023 ,compared to 46.31% as of 31 March 2022 .

Cash flow from operating activities decreased to Rs 634.23 crore for year ended March 2023 from Rs 679.96 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 737.23 crore, compared to Rs 374.63 crore during the year ended March 2022.

Operational highlights:

The consolidated sales volume increased by 5.7% in Q1FY24.

Expansion:

Work on the Expansion Project at its Subsidiary, Udaipur Cement Works Ltd (UCWL) of 2.50 Million Tonnes Cement Plant is on full swing as per Schedule. The Project is expected to be commissioned in the Second Quarter of FY25 as per the Original Schedule. The trial runs for Clinkerisation Line of 1.50 Million Tonnes Per Annum has commenced.

UCWL has successfully completed the Rights Issue of Rs448 Crore and the same will be deployed in the On-going Expansion Project of UCWL.

The Company is implementing a Project for enhancing its TSR from 4% to 16% in a phased manner at its Sirohi Cement Plant as a part of its Green Initiatives.

The Company is also enhancing its WHR Capacity by 3.5 MW at Sirohi which will come into stream in 4^th Quarter of FY’24.

Solar Power: To increase its share of Renewable Power, the Company has tied-up with a Private Player for sourcing 40 MW of Solar Power Plant for its Durg Cement Plant. After the Implementation of this Solar Power Project, the Share of Renewable Energy would go up to 80% for Durg Plant and to around 50% for the Company.

Management Commentary:

Commenting on the Results of the Company, Mrs. Vinita Singhania, Vice Chairman & Managing Director (VC&MD) of the Company said “the Operations of the Company during the Quarter were impacted by unprecedented rain & cyclone Biparjoy in the State of Gujarat & Rajasthan”.

JK Lakshmi Cement : Consolidated Results

	Quarter ended			Year ended
Particulars	202306	202206	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	1,730.25	1,654.14	4.60	6,451.50	5,419.89	19.03
OPM (%)	11.34	15.53	-419 bps	13.00	17.54	-454 bps
OP	196.23	256.85	-23.60	838.71	950.71	-11.78
Other Inc.	11.13	6.91	61.07	57.52	68.32	-15.81
PBIDT	207.36	263.76	-21.38	896.23	1,019.03	-12.05
Interest	33.10	35.86	-7.70	133.40	142.19	-6.18
PBDT	174.26	227.90	-23.54	762.83	876.84	-13.00
Depreciation	55.72	55.95	-0.41	228.33	223.47	2.17
PBT	118.54	171.95	-31.06	534.5	653.37	-18.19
Share of Profit/(Loss) from Associates	0	-0.01	-	-0.02	-0.04	50.00
PBT before EO	118.54	171.94	-31.06	534.48	653.33	-18.19
EO Income	0	0	-	0	-26.99	-
PBT after EO	118.54	171.94	-31.06	534.48	626.34	-14.67
Taxation	38.75	56.87	-31.86	165.37	148.76	11.17
PAT	79.79	115.07	-30.66	369.11	477.58	-22.71
Minority Interest (MI)	1.32	3.89	-66.07	10.49	14.02	-25.18
Net profit	78.47	111.18	-29.42	358.62	463.56	-22.64
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	78.47	111.18	-29.42	358.62	463.56	-22.64
EPS (Rs)*	6.67	9.45	-29.42	30.48	41.09	-25.83

* EPS is on current equity of Rs 58.84 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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