JSW Cement (JSWCEMENT) Q4 20/21 earnings summary

Executive summary

• FY 2020-21 recovery strengthened in H2 after pandemic shutdowns; consolidated sales reached a record 8.01 MMT, up 7.1% YoY, and capacity utilisation averaged 57% vs 54% in FY20.

• Consolidated revenue rose 32% to ₹3,858.15 crore, EBITDA increased 36% to ₹818.73 crore, and PAT grew 62% to ₹249.85 crore.

• Growth strategy centres on expanding capacity from 14 MTPA to 25 MTPA, premium products, operating efficiency and sustainable cement.

Financial highlights

• Consolidated revenue ₹3,858.15 crore vs ₹2,927.51 crore; operating EBITDA ₹818.73 crore vs ₹601.81 crore; PAT ₹249.85 crore vs ₹154.31 crore in FY20.

• Consolidated production was 7.92 MTPA, up 4.8% YoY; sales were 8.01 MTPA, up 7.1%.

• Standalone revenue was ₹3,413.01 crore, up 23.6%; operating EBITDA ₹783.32 crore, up 32.4%; PAT ₹257.85 crore vs ₹161.75 crore.

• Consolidated PBT was ₹379.48 crore; excluding the ₹35.40 crore exceptional ESOP charge, PBT before exceptional item was ₹414.88 crore.

Outlook and guidance

• Capacity target is 25 MTPA by FY 2024-25, with plans for ~11 MTPA of grinding and 2.1 MTPA of clinker capacity across eastern, western and southern India.

• Near-term projects include 0.8 MTPA grinding at Vijayanagar, 1.2 MTPA at Salboni and 0.8 MTPA at Salem; debottlenecking and clinker upgrades are also underway.

• Management expects cement demand to benefit from infrastructure spending, affordable housing and rural construction; industry production was projected to grow 4–7% in FY 2021-22.