JSW Cement (JSWCEMENT) Q4 15/16 earnings summary

Executive summary

• FY16 revenue from operations reached ₹1,272.01 crore, up 38% YoY; EBITDA was ₹309.15 crore, up 85%, and PAT was ₹89.25 crore versus a ₹23.47 crore loss.

• Sales volume rose 35.7% to 3.65 mt and production increased 34.1% to 3.66 mt, despite subdued demand and surplus supply in target markets.

Financial highlights

• Gross turnover was ₹1,435.38 crore versus ₹1,056.16 crore; net turnover was ₹1,272.01 crore versus ₹921.91 crore.

• EBITDA increased to ₹309.15 crore from ₹166.70 crore; finance costs fell 8% to ₹132.55 crore, while depreciation and amortisation rose 25% to ₹56.93 crore.

• PAT was ₹89.25 crore versus a ₹23.47 crore loss; basic and diluted EPS were ₹1.99 versus negative ₹0.69.

• Other income increased to ₹17.80 crore from ₹5.07 crore, including ₹11.41 crore of government incentive income and an insurance claim recognition.

Outlook and guidance

• Capacity ambition: 30 mtpa by 2020; separate expansion plans target 20 mtpa over three years, with 9.6 mtpa of grinding capacity planned over the next two years.

• Planned projects include 2.4 mtpa each at Vijayanagar and Salboni, plus 1.2 mtpa each at Dolvi and Jajpur; Salem is also planned at 1.2 mtpa, subject to approvals.

• Nandyal projects include a 500-tonne GGBS bulk-loading facility, additional truck-loading bays, and railway siding and bulk cement-loading works at Panyam.

• FY16-17 Indian GDP growth was forecast at 7–7.75%; cement consumption was projected to grow at ~9% CAGR during FY17–FY20.