JK Lakshmi Cement: Q4FY14 Result Analysis

JK Lakshmi Cement, a north-based cement manufacturing company, has posted healthy set of numbers for fourth quarter and year ended March 31, 2014. Topline of the company grew by 21% to Rs 648 crore in Q4FY14 against Rs 536 crore in the same period of last year. 

JK Lakshmi Cement's operating EBITDA recorded double digit growth of 18% on Y-o-Y basis and stood at Rs 112 crore during the said period against Rs 92 crore in Q4FY13. Further bottomline of the company showed exceptional growth and went up by 58.7% to Rs 53 crore in Q4FY14 as compared with Rs 33 crore in the same period last year.

Moreover the company was able to optimize its major expenses during Q4FY14. Cost of material of the company came down to 15% of total operating revenue in Q4FY14 against 17% in the corresponding quarter of last year. Depreciation for the company surprisingly came down by 37% on yearly basis and stood at 4.8% of total revenue against 9.2% in the same period last year. Further transportation cost during the said period also came down to 20.7% of total revenue against 22% in Q4FY13.

During the said quarter, the company increased its installed capacity of clinker by 3.3 lakh MT to 46 lakh MT per annum and grinding capacity by 6.57 lakh MT to 66.43 lakh MT and it has also increased its holding in Udaipur cement works from 27.72% to 75.56% by allotment of fresh equity shares worth Rs 78 crore in the said quarter.

Coming to the annualized performance of the company for FY14, the company's topline recorded marginal growth during the year and stood at Rs 2056 crore against Rs 2055 crore in the last fiscal year. However operating EBITDA of the company went down by 30% to Rs 301 crore in FY14 against Rs 428 crore in FY13 on account of increase in total expenditure that went up to 92% of total revenue during the said year against 86% in FY13. Moreover, net profit of the company dropped by 46% on yearly basis and stood at Rs 94 crore against Rs 175 crore in last fiscal year.

At CMP of Rs 181.7 per share, the company is trading at 23x of its trailing 12-month earning with a gain of 4.7% over its previous close. The company has recommended divided of Rs 2 per share for FY14.