JSW Cement (JSWCEMENT) Q4 19/20 earnings summary

Executive summary

• FY2020 consolidated revenue rose 7.5% YoY to ₹2,927.51 crore; EBITDA reached ₹642.17 crore and PAT ₹154.31 crore despite subdued demand, floods and COVID-19 disruption late in the year.

• Sales volumes reached 7.48 MMT; premium products grew to 17% of sales from 10%, while GGBS gained traction in infrastructure markets.

• Installed cement capacity reached 14.0 MTPA after commissioning Jajpur grinding capacity and a 1 MTPA Fujairah clinker line; expansion and cost-efficiency initiatives remain central priorities.

Financial highlights

• Consolidated revenue from operations ₹2,927.51 crore vs ₹2,722.23 crore in FY2019; EBITDA ₹642.17 crore vs ₹490.10 crore; PAT ₹154.31 crore vs ₹90.31 crore.

• Standalone revenue ₹2,761.20 crore, up 4.3% YoY; operating EBITDA ₹591.59 crore, up 31.2%; PAT ₹161.76 crore, up 36.6%.

• Consolidated operating cash flow was ₹699.02 crore; capex and capital advances drove investing cash outflow of ₹782.30 crore.

• Consolidated sales were 7.48 MMT; production of cement, GGBS and clinker totaled 7.56 MMT, up 5.15% YoY.

Outlook and guidance

• Planned ₹2,875 crore investment to raise capacity from 14 MTPA to 25 MTPA; the MD cited a 2023 target, with additional grinding and clinker projects in the pipeline.

• FY2021 cement-industry demand was forecast to decline 4–5% YoY; Q1 demand could fall 40–50%, followed by low single-digit Q2 growth and potential Q3 recovery as infrastructure spending resumes.

• Priorities include cost competitiveness, premium products, steel-slag transformation, construction chemicals, digital sales and logistics, and alternative fuels and raw materials.