JK Lakshmi Cement (500380) Q1 24/25 earnings summary

Executive summary

• Standalone net profit for Q1FY25 surged 109% year-over-year to Rs.156.31 crore, with consolidated net profit at Rs.67.60 crore for the same period.

• Revenue from operations declined year-over-year, with standalone revenue at Rs.1444.52 crore and consolidated revenue at Rs.1563.88 crore for Q1FY25.

• Flat sales volumes due to post-Holi slowdown, election-related disruptions, and regions dependent on migrant labor.

• Realizations declined to the lowest levels in three years, driven by pricing pressure across all regions.

• The Board approved a Composite Scheme of Arrangement to merge key subsidiaries, aiming to enhance shareholder value.

Financial highlights

• Standalone EBITDA for Q1FY25 was Rs.276.73 crore, up from Rs.181.45 crore year-over-year; consolidated EBITDA at Rs.235.45 crore, up from Rs.207.36 crore.

• Standalone gross debt at INR 700 crore, net debt at INR 325 crore; consolidated gross debt at INR 2,050 crore, net debt at INR 1,650 crore as of June 2024.

• Q1 cement sales at 21.68 lakh tons and clinker sales at 1.58 lakh tons (standalone); consolidated cement sales at 27.89 lakh tons and clinker at 2.48 lakh tons.

• Realizations dropped 6% sequentially, with a sharper decline than industry average due to higher clinker sales and adverse regional mix.

• Non-cement revenue for Q1 at INR 132 crore, with RMC contributing INR 72 crore; EBITDA margin for non-cement business at 4%.

Outlook and guidance

• Industry demand growth for FY 2025 revised down to 6%-7%; company expects to outperform by 1-2 percentage points.

• Targeting 60% utilization for new Udaipur line by FY 2025-end, aiming for 75% utilization by FY 2026.

• CapEx guidance for FY 2025 at INR 1,500-1,650 crore consolidated, with similar levels expected in FY 2026 and FY 2027.

• Capacity expected to reach 18 MTPA in FY 2025, 22.5 MTPA by FY 2027, and 25 MTPA with Northeast and other expansions.

• The company aims to reach a cement capacity of 30 million tonnes by 2030.