JSW Cement (JSWCEMENT) Q4 22/23 earnings summary

Executive summary

• FY 2022-23 delivered 9.2% consolidated sales-volume growth to 9.61 MMT, while input-cost pressure, project delays and higher finance costs weighed on profitability.

• Capacity stood at 16.6 MTPA; expansion plans target 26 MTPA by FY 2025-26 and 50 MTPA by 2030.

Financial highlights

• Consolidated revenue was ₹5,836.72 crore vs ₹4,668.57 crore in FY22; consolidated PAT was ₹58.55 crore vs ₹232.65 crore.

• Consolidated EBITDA was ₹906.85 crore; operating EBITDA was reported at ₹817 crore in management commentary.

• Standalone revenue rose 16.4% to ₹4,770.74 crore; operating EBITDA increased 10.1% to ₹800.34 crore, with PAT of ₹206.96 crore vs ₹324.39 crore.

• Standalone operating EBITDA margin was 16.8% vs 17.7%; power and fuel costs rose 33.2% to ₹797.33 crore.

• Consolidated cement and GGBS sales reached 9.61 MMT, up 9.2% YoY; capacity utilisation was 57.5%.

Outlook and guidance

• Capacity targets: 20.6 MTPA by FY 2023-24, 26 MTPA by FY 2025-26 and 50 MTPA by 2030.

• Planned investment of ~₹18,000 crore over seven years to support capacity expansion and growth.

• Management targeted 80% capacity utilisation and aimed to become a top-five Indian cement producer by 2030.

• Indian cement demand was projected to grow 6-8% in FY 2023-24, with input costs for coal, pet coke and gypsum remaining key headwinds.