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 at INR 479 crores, a 19% year-over-year increase.

• Profit after tax rose 60% year-over-year 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 record time.

• Board approved unaudited Q1 FY25 results and adopted the FY24 Cost Audit Report.

Financial highlights

• Margins for the quarter were 18.7%, up from 15.8% a year ago; standalone EBITDA margin at 17.5%.

• EPS for the quarter was INR 26.2, up 61% year-over-year; consolidated EPS at INR 23.98.

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

• Quarterly incentives received were INR 69 crores.

• Standalone revenue from operations for Q1 FY25: INR 2,643.09 crores; consolidated: INR 2,807.57 crores.

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.

• Q2 is expected to be challenging due to lower prices and higher branding and maintenance costs, but recovery is anticipated from Q3.

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

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