India: JK Cement reports 6% y-o-y growth in sales volumes in Q1FY'25

JK Cement's has reported a rise in sales volumes, net sales y-o-y in Q1, meanwhile, dropped on q-o-q basis for the quarter ending 30 June 2024. The capacity utilisation from grey cement segment was 79% during the quarter. Central India region achieved 93% capacity utilisation.

Update on projects:

• During the quarter, the company has commissioned 2 mnt grinding unit at Prayagraj in record time of 10 months from start of work. The commercial dispatches have started from 25 June 2024. The capex spent till June 2024 (year till date) was INR 321 crores.
  
  
• 3.3 mtpa Grey Clinker at Panna and 3.0 mtpa Cement Capacity at Panna, Hamirpur and Prayagraj (1 mtpa at each location): Order for main machinery, civil and mechanical contractors have been finalised and the construction is progressing as per schedule. The capex spent till June 2024 (year till date) was INR 95 crores.
  
  
• 3 mtpa Split Grinding Unit at Bihar: Land acquisition has been done and order for main machinery have been placed. The capex spent till June 2024 (year till date) was INR 26 crores.
  
  

Highlights:

Sales volumes up 6% y-o-y: The company's combined sales volumes increased 6% on the year to 4.87 mnt in first quarter of financial year 2025 (Q1FY'25) compared with 4.60 mnt in the corresponding period of last year (CPLY). The same dropped 7% on quarter against 5.21 mnt in the previous quarter.

The company's grey cement segment sales grew 6% y-o-y to 4.36 mnt in Q1FY'25 against 4.10 mnt in the CPLY. Meanwhile, q-o-q volumes fell by 7% against 4.68 mnt in Q4FY'24.

In the white cement segment, sales edged higher by 2% y-o-y to 0.513 mnt in Q1FY'25 from 0.503 mnt in Q1FY'24. While q-o-q basis, sales fell by 4% against 0.534 mnt in Q4FY'24.

Net Sales Realisation (NSR): The NSR for grey business was around INR 4,669/t in Q1FY'25.

Net sales up 1% y-o-y: Net sales edged up by 1% y-o-y to INR 2,555 crores during the quarter against INR 2,541 crores in the CPLY. Meanwhile, on q-o-q basis, the same fell 11% from INR 2,856 crores in Q4FY'24.

EBITDA rises 19% y-o-y: The company's EBITDA registered growth of 19% y-o-y to INR 479 crores in Q1FY'25 against INR 402 crores in the CPLY. On the other hand, the same fell 13% q-o-q compared with INR 548 crores in Q4FY'24.

Key cost variables: Fuel costs declined 23% y-o-y to INR 857/t in Q1FY'25 against INR 1,108/t in Q1FY'24. On q-o-q basis also, cost fell 4% from INR 893/t in Q4FY'24. Fuel costs declined amid drop in pet coke (6.5% sulphur) prices, which reduced by 4% q-o-q to $110.2/t CFR USA in Q1 compared with $114.4/t CFR in the preceding quarter.

Diesel prices remained largely stable during the quarter at INR 90.70/litre during the quarter.

The logistics cost was stable y-o-y at INR 1,228/t in Q1FY'25. Lead distance reduced to 415 kms in Q1 from 419 kms in the previous quarter.

Furthermore, 6 mnt capacity expansion is currently on track and the company aims to achieve 30 mnt capacity by financial year 2026 (FY'26).