J K Cement

JK Cement posted a bumper set of numbers for Q1FY17, mainly on the back of lower power and fuel costs. Like all cement companies, JK Cement too reaped benefits of lower fuel costs, which was down by a good 22% (YoY).

This along with the 9% rise in net sales at Rs.887 crore helped boost the bottomline. EBITDA for the quarter rose 99% at Rs.177 crore while margins were up smartly from 10.9% v/s 19.7%. Net profit for the quarter was up from a mere Rs.1 crore to Rs.61 crore. This surge in net profit was despite an exceptional expense of Rs.11 crore which was on account of impairment charges.

The company’s equity is at Rs.69.93 crore and EPS for the quarter has come in at a very healthy Rs.8.70 (FV of Rs.10). The promoters holding in the company stood at 67.02 % while Institutions hold 25.05% and Non-Institutions hold 7.93%. Q2 for all cement companies is usually weak due to monsoon factor but post monsoon, outlook for the sector is good as pick-up is expected in infra spending and rural demand expected to rise on better monsoon.