J K CEMENT LTD
Q2 FY 21 RESULTS REVIEW
DT 21 12 2020
COMPANY OVERVIEW
J.K. Cement Limited is engaged in cement business. The Company produces grey cement, white cement and water proof.
The Company manufactures grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India.
Grey cement produced by it consists of ordinary portland cement (OPC) and portland pozzolana cement (PPC).
OPC has three grades, which consist of 53-grade, 43-grade and 33-grade. Its cement products are marketed under the brand names: J.K. Cement and Sarvashaktiman for OPC products;
J.K. Super for PPC products, and J.K. White and Camel for white cement products.
The Company has grey cement plants, white cement plant, thermal power plants and waste heat recovery power plant.
MANAGEMENT
Yadupati Singhania Managing Director
Raghavpat Singhania Executive Director
Madhavkrishna Singhania Executive Director & CFO
MD'S MESSAGE IN AR 2019-20
We achieved growth of 10% in revenue from operations to ₹ 5,464 Crores in FY 2019-20 (from Rs. 4,981 Crores in FY 2018-19). Our EBIDTA increased 40% to Rs.1,201 Crores in FY 2019-20 (from Rs.855 Crores in FY 2018-19) while EBIDTA margin improved to 21.98% in 2019-20 (from17.16% in FY 2018-19). EBIDTA/tonne rose 41% to Rs.1,256 in FY 2019-20 from Rs.888 in FY 2018-19. Net profit increased 23% to Rs.400 Crores in FY 2019-20 (from ₹ 325 Crores in FY 2018-19). Earnings per share stood at Rs.51.82 in FY 2019-20.
EXPANSION PLANS LARGELY ON TRACK :
We commissioned the 2.6 Mn TPA clinker production line at Mangrol (Rajasthan) and 3.5 MnTPA cement grinding capacity out of which, Nimbahera (1 MnTPA), Mangrol (1 MnTPA) and split grinding unit at Aligarh (1.5 MnTPA).
Work at split grinding unit at Balasinor (Gujarat) of 0.7 MnTPA had to be stopped for some time due to the nationwide lockdown to contain the COVID-19 spread. We now expected the unit to come on stream in third quarter of FY 2020-21.
We undertook the modernisation of line number 3 at our Nimbahera plant, which is expected to complete by the end of financial year.
The 3-Lac-Tonne wall putty expansion work at Katni has also been deferred due to disruptions caused by the pandemic and is likely to be commissioned by the end of the second quarter of FY 2020-21.
DELIVERING ON BRAND PROMISE We continued on our product innovation path by launching two new products. Manufactured through a technology developed in-house, Particle level Water (PWRT), JK Super Strong Weather Shield Cement has an integral water repellent property at the particle level. JK Cement TileMaxX is our polymer-modified high strength adhesive used for all types of tiles, tiles on tiles and cementitious substrates.
To expand and strengthen our sub-brands under the white cement portfolio, we re-launched our iconic JK Wall Putty as JK Cement WallMaxX – with the stated promise of making the walls of your home, ‘the ultimate masterpiece.
’SUSTAINABILITY AGENDA GAINS FURTHER TRACTION : At JK Cement, we work relentlessly to improve resource efficiency in clinker and cement production processes by optimising energy usage, utilising generated waste, and targeting higher alternative fuel and raw material usage. We enhanced our focus on environmental protection, energy efficiency, and emission reduction. We are constantly investing in research and development initiatives to limit the use of natural resources in grey cement manufacturing and increase the share of additives like fly ash and slag in the production process.
QUARTERLY RESULTS
|
J. K. Cement (in Rs. Cr.) |
Sep '20 |
Jun '20 |
Mar '20 |
Dec '19 |
Sep '19 |
YOY |
QOQ |
|||||||
|
Net Sales |
1634 |
1005 |
1546 |
1472 |
1318 |
24.04 |
62.65 |
|||||||
|
FINAL NET PROFIT |
221.15 |
52.28 |
164.13 |
124.3 |
79.51 |
178.14 |
323.01 |
|||||||
|
Equity |
77.27 |
77.27 |
77.27 |
77.27 |
77.27 |
0 |
0 |
|||||||
|
Basic EPS |
28.67 |
6.46 |
20.81 |
16.09 |
10.29 |
178.62 |
343.81 |
|||||||
|
Raw Materials |
269.6 |
121.34 |
229.98 |
240.3 |
215.82 |
24.92 |
122.19 |
|||||||
|
Traded Goods |
10.62 |
5.65 |
7.07 |
7.89 |
13.4 |
-20.75 |
87.96 |
|||||||
|
Increase/Decrease in Stocks |
-35.5 |
77.69 |
-26.67 |
0.1 |
-1.93 |
1739.38 |
-145.69 |
|||||||
|
Power & Fuel |
294.58 |
157.65 |
282.57 |
273.49 |
-- |
86.86 |
||||||||
|
Employees Cost |
109.42 |
104.71 |
112.29 |
112.69 |
107.95 |
1.36 |
4.5 |
|||||||
|
Depreciation |
75.17 |
73.66 |
72.55 |
70.2 |
69.46 |
8.22 |
2.05 |
|||||||
|
Other Expenses |
554.25 |
325.22 |
588.31 |
547.8 |
726.57 |
-23.72 |
70.42 |
|||||||
|
Total Expenditure |
1,278 |
865 |
1,266 |
1,252 |
1,131 |
13 |
47.75 |
|||||||
|
P/L Before Other Inc., Int., Excpt. Items & Tax |
356.25 |
138.92 |
279.55 |
219.31 |
186.36 |
91.16 |
156.44 |
|||||||
|
Other Income |
28.56 |
20.13 |
27.29 |
23.19 |
17.5 |
63.2 |
41.88 |
|||||||
|
P/L Before Int., Excpt. Items & Tax |
384.81 |
159.06 |
306.84 |
242.5 |
203.86 |
88.76 |
141.93 |
|||||||
|
Interest |
60.78 |
66.51 |
66.13 |
66.33 |
69.15 |
-12.1 |
-8.62 |
|||||||
|
P B T |
324.02 |
92.54 |
240.72 |
176.17 |
134.72 |
140.51 |
250.14 |
|||||||
|
Tax |
102.47 |
42.6 |
79.89 |
51.87 |
55.21 |
85.6 |
140.54 |
|||||||
|
Net Profit |
221.56 |
49.95 |
160.82 |
124.3 |
79.51 |
178.66 |
343.56 |
|||||||
|
Minority Interest |
-0.41 |
2.34 |
3.31 |
-- |
-- |
-117.52 |
||||||||
MP 1882
PE 16.41
VOLUMES 1,55,672
52 Wk L/H 800 2240.15
TECHNICALRATING
WEEKLY/MONTHLY
VERY BULLISH
Market Cap (Rs Cr.) 14,522.57
|
Annual Results |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Sales |
5,801 |
5,258 |
4,853 |
4,654 |
4,368 |
|
Net Profit |
483 |
263 |
285 |
171 |
54 |
|
Other Income |
85 |
80 |
128 |
98 |
49 |
|
Total Income |
5,886 |
5,339 |
4,981 |
4,752 |
4,418 |
|
Total Expenditure |
4,876 |
4,665 |
4,314 |
4,164 |
4,020 |
|
EBIT |
1,010 |
673 |
667 |
588 |
398 |
|
Interest |
276 |
261 |
284 |
302 |
304 |
|
Tax |
251 |
148 |
97 |
113 |
38 |
HISTORICAL PRICES
3 YR BEFOR 1055.8
2YR BEF 738.75
1YR BEF 1155
3MN BEF 1583
1MNT BEF 1920
1 WEEK BE 2045
NOW 1882
|
Share Holding Pattern in (%) |
||||
|
Standalone |
Mar-20 |
Sep-19 |
Jun-19 |
Mar-19 |
|
Promoters |
58.07 |
58.07 |
58.07 |
58.07 |
|
Pledged |
0 |
0 |
0 |
0 |
|
FII/FPI |
12.39 |
11.91 |
10.7 |
10.01 |
|
Total DII |
25.5 |
25.23 |
26.2 |
26.6 |
|
Fin.Insts |
0.01 |
0.02 |
0.02 |
0.02 |
|
Insurance Co |
2.28 |
2.23 |
3.14 |
3.35 |
|
MF |
21.37 |
21.24 |
21.15 |
21.34 |
|
Others DIIs |
1.84 |
1.74 |
1.89 |
1.89 |
|
Others |
4.04 |
4.8 |
5.03 |
5.32 |
|
Total |
100 |
100.01 |
100 |
100 |
|
CASH FLOWS |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Operating Activities |
1,366 |
703 |
883 |
771 |
580 |
|
Investing Activities |
-1,476 |
-802 |
-95 |
-649 |
-407 |
|
Financing Activities |
-108 |
172 |
-722 |
-345 |
-193 |
|
Others |
-6 |
-22 |
16 |
-18 |
0 |
|
Net Cash Flow |
-224 |
51 |
81 |
-241 |
-20 |
|
Type |
Dividend% |
Ex-Dividend date |
|
Interim |
75 |
Mar 11, 2020 |
|
Final |
100 |
Jul 23, 2019 |
|
Final |
100 |
Jul 17, 2018 |
|
Final |
80 |
Jul 18, 2017 |
|
Final |
40 |
Jul 26, 2016 |
|
Per Share Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Basic EPS (Rs.) |
62.56 |
36.74 |
41.41 |
25.42 |
8.27 |
|
Diluted Eps (Rs.) |
62.56 |
36.74 |
41.41 |
25.42 |
8.27 |
|
Book Value [Excl. Reval Reserve]/Share (Rs.) |
389.22 |
348.78 |
282.42 |
245.21 |
228.35 |
|
Dividend/Share (Rs.) |
7.5 |
10 |
10 |
8 |
4 |
|
Face Value |
10 |
10 |
10 |
10 |
10 |
|
Margin Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Gross Profit Margin (%) |
22.38 |
17.39 |
18.86 |
17.71 |
13.64 |
|
Operating Margin (%) |
17.42 |
12.8 |
14.09 |
13.05 |
9.12 |
|
Net Profit Margin (%) |
8.33 |
5.01 |
5.88 |
3.69 |
1.25 |
|
Return Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Return on Networth / Equity (%) |
16.39 |
10 |
14.66 |
10.38 |
3.64 |
|
ROCE (%) |
15.04 |
11.6 |
13.29 |
3.46 |
1.18 |
|
Return On Assets (%) |
5.81 |
3.64 |
4.48 |
2.77 |
0.93 |
|
Liquidity Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Current Ratio (X) |
1.22 |
1.27 |
1.29 |
1.15 |
1.03 |
|
Quick Ratio (X) |
0.85 |
0.88 |
0.84 |
0.72 |
0.65 |
|
Leverage Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Debt to Equity (x) |
0.95 |
0.99 |
1.38 |
1.81 |
1.97 |
|
Interest Coverage Ratios (%) |
3.66 |
2.58 |
2.41 |
2.01 |
1.31 |
|
Turnover Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Asset Turnover Ratio (%) |
67.91 |
70.94 |
75.17 |
72.59 |
70.63 |
|
Inventory Turnover Ratio (X) |
8.4 |
8.43 |
8.23 |
8.3 |
8.86 |
|
Valuation Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
P/E (x) |
0 |
23.59 |
24.51 |
36.78 |
81.68 |
|
P/B (x) |
2.4 |
2.46 |
3.6 |
3.82 |
2.96 |
|
EV/EBITDA (x) |
7.31 |
9.69 |
10.12 |
11.16 |
12.51 |
|
P/S (x) |
1.25 |
1.27 |
1.46 |
1.41 |
1.07 |
|
Growth Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
3 Yr CAGR Sales (%) |
7.62 |
6.37 |
12.61 |
18.51 |
14.48 |
|
3 Yr CAGR Net Profit (%) |
41.13 |
68.78 |
26.25 |
31.89 |
