J K Cement
JK Cement did well for for Q4 and Fy14. For Q4Fy14, net sales rose 7% (YoY) at Rs.827 crore and then a 67% jump in other operating income and other income jumping up from Rs.8 crore to Rs.14 crore, while keeping a tight leash on operating expenses, the company ended the quarter with a net profit at Rs.76 crore, up 36%.
It ended FY14 with a 4% decline in consolidated net sales at Rs.2781 crore but a 63% drop in tax outgo helped the company end the fiscal with a smart 234% jump in net profit at Rs.771 crore v/s Rs.231 crore in FY13. EPS for FY14 is at Rs.11 and this discounts the current price by around 26 times.
The company’s consolidated borrowings as at 31st March 2014 stood at Rs.2647 crore, up 112% over FY13. Interest outgo for the year was at Rs.153 crore v/s Rs.140 crore in previous fiscal. The company white cement plant at Fujairah in UAE commenced commercial production in March 2014 and this is expected to start adding to the coffers from current Q1. It is through this plan that all export income in the company will happen, to UAE and to Africa, meaning a lot of savings on freight costs. 25% of its total operating cost was on account of freight in FY14. Looking ahead, it is expected that cement as a sector and JK Cement will do well on the back of strong demand and better pricing environment with the new Govt expected to give impetus to infra building.