JSW Cement (JSWCEMENT) Q4 17/18 earnings summary

Executive summary

• FY18 sales volume rose 15.2% to 4.93 mtpa; standalone net revenue reached ₹1,588 crore and operating EBITDA ₹331.5 crore, both record highs.

• Capacity reached 11.60 mtpa after commissioning grinding capacity at Vijayanagar and Salboni; expansion into eastern India drove new product launches and market reach.

Financial highlights

• Standalone net revenue increased 12.2% YoY to ₹1,588 crore; gross turnover rose 3.3% to ₹1,638.6 crore.

• Standalone operating EBITDA grew 8.2% to ₹331.5 crore; EBITDA margin was 20.9% versus 21.7% YoY.

• Standalone net profit fell 20.5% to ₹90.7 crore; EPS declined to ₹1.46 from ₹2.53.

• Consolidated net revenue was ₹1,610.3 crore and operating EBITDA ₹323 crore; net profit was ₹149.8 crore, including a ₹98.4 crore acquisition remeasurement gain and ₹10.12 crore exceptional expense.

• Operating cash flow was ₹327.9 crore standalone and ₹426.9 crore consolidated; investing outflows were ₹903 crore and ₹999.6 crore, respectively.

Outlook and guidance

• Targeting 20 mtpa capacity over 2–3 years, with ₹1,000–1,500 crore earmarked for capex; management also remains open to strategic acquisitions.

• Capacity targeted at 14 mtpa by FY19-end, with planned 1.2 mtpa grinding units at Dolvi and Jajpur and a 1 mtpa clinker facility in Fujairah.

• Indian cement demand expected to grow 6–7% in FY19; plans include Composite Cement launches in the South and East and continued market expansion.

• Solar capacity of 5 MW at Nandyal and 3.5 MW at Salboni, plus 18 MW captive thermal power at each site, is planned to reduce energy costs.