J.K. Cement (532644) Q1 24/25 earnings summary

Executive summary

• Net sales for Q1 FY25 were INR 2,555 crores, up 1% year-over-year, with EBITDA up 19% year-over-year and profit after tax rising 60% to INR 203 crores.

• Grey cement volumes grew 6% year-over-year; Central India expansion achieved 93% capacity utilization.

• Commissioned a 2 million ton greenfield grinding unit at Prayagraj in 10 months, supporting capacity expansion.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with review by statutory auditors and Audit Committee.

• Change in designation of CEO to Joint Managing Director & CEO, with no change in terms or remuneration.

Financial highlights

• Standalone net sales for Q1 FY25 were INR 2,555 crores, up 1% year-over-year; consolidated net sales reached INR 2,719 crores, up 1% year-over-year.

• Standalone EBITDA was INR 479 crores (19% year-over-year growth); consolidated EBITDA was INR 486 crores (19% year-over-year growth).

• Standalone EPS increased 61% year-over-year to INR 26.2; consolidated EPS rose 66% year-over-year to INR 23.9.

• Gross debt stood at INR 4,515 crores; net debt at INR 2,830 crores as of June 30, 2024.

• Margins for Q1 FY25 were 18.7%, compared to 19.2% in the previous quarter and 15.8% year-over-year.

Outlook and guidance

• Volume growth guidance for FY25 remains at 10%.

• Expansion projects are on track, targeting 30 MTPA by FY26, with new units commissioned and further capacity additions scheduled.

• Expect Q2 to be tough due to lower prices and higher branding/maintenance costs, but anticipate recovery from Q3.

• Paints business targets INR 300 crores revenue in FY25 and INR 500 crores in FY26, with an expected FY25 EBITDA loss of INR 40 crores.

• Green power target of 75% by FY30 may be achieved by FY28, with INR 3/unit cost savings.