J K CEMENT LTD - Q2 FY 21 - RESULTS REVIEW - DT 21 12 2020

 

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