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Q1 FY21

Emmbi Industries Ltd Q1 FY23 Result Updates.
Business, Equities, Markets, Research, Research Reports - August 19, 2022

JK Cement to report a net profit of Rs. 163 crores.

JK Cement to report a net profit of Rs. 163 crores.

The company has reported sales of Rs. 2270 crores during the period ended June 2022, as compared to Rs. 2351 crores during the period ended March 2022. The company has posted a net profit of Rs. 163 crores for the period ended June 30, 2022, as against a net profit of Rs. 201 crores for the period ended March 31, 2022. The company has an EPS of Rs. 21.06 for the period ended June 30, 2022 as compared to Rs. 26.03 for the period ended March 31, 2022. The margins are at 17.7% in Q1 FY23 versus 23.5% in Q1 FY22.

Margin expansion at a low cost:

Grey cement volume fell 10% QoQ to 0.31 Cr. MT. The total sales stood at 86% vs. 75% YoY. The volume of putty increased 38% year on year to 5 lakhs. With a QoQ increase in the sales share of putty, blended Net Sales Realization (NSR) firmed up 6% QoQ and rose 7% YOY. The total Opex was up a modest 4% QoQ, mainly on a loss in grey cement and on lower fuel inflation. Thus, blended unitary EBITDA rebounded 16% QoQ to INR 1,101 per MT. The margin for both grey and white segments expanded by 100/250bps QoQ to 17/20% and 20%, respectively, implying EBITDA of INR 900/MT. The UAE subsidiary’s revenue went up 28% YoY to INR 100Cr. As JK Cement split the useful life of its cement power plants into 15-20 year periods, depreciation expense went up 16% QoQ.

 In Q1FY23, healthy pricing recovery in the northern regions, subdued fuel cost inflation, and low cost inventory benefits increased blended unitary EBITDA by 16% QoQ to INR 1,101 per MT as margins in both the grey and putty segments rebounded. While consolidated revenue rose 32% year over year, EBITDA came in flat. JKCE’s central expansion of 4 million MT is on track by Q4FY23. The company plans to further add 6 million MT of grey cement capacity in the central and northern regions by the end of FY25 to brace its distribution reach.

Valuations:

 The stock P/E for JK cement is at 32.5x. With a five-year P/E of 24.8x, the EPS stood at Rs. 85.1. The return on capital employed was 16.6% and the return on equity was 17.4%. The EBITDA was recorded at 15.4x. The ROA was at 6.57% and the price to book ratio was at 4.90x. The scrip closed at Rs. 2736, up by 1.36%.

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SAIL reported a net profit of Rs. 804 crore.
Business, Equities, Market News, Markets, Result Updates - August 13, 2022

Sail reported a net profit of Rs. 804Cr.

SAIL reported a net profit of Rs. 804 crore.

SAIL on Wednesday posted a 79% fall in its consolidated net profit to Rs 804.50 crore during the June quarter, dragged by higher expenses. It had clocked Rs 3,897.36 crore in the June period of the 2021-22 fiscal, Steel Authority of India Limited (SAIL) said in a regulatory filing. The company’s total income rose to Rs 24,199.51 crore from Rs 20,754.75 crore in the year-ago quarter. The expenses increased to Rs 23,295.23 crore as against Rs 15,604.07 crore in June 2021.

EBITDA fell to Rs 2,606 crore compared to Rs 6,674 crore in June 2021. The revenue was at Rs 24,029 crore, up 16% year-on-year. The sales volume declined marginally to 3.15 million tonnes (MT) during Q1 of the current fiscal compared to 3.33 MT in June 2021.

Other parameters for the business:
The crude steel output was at 4.33 million tonnes, up from 3.77 MT in the same quarter of the preceding financial year. The sales were down to 3.15 MT as compared to 3.33 MT last year. The first quarter of FY23 saw challenges of higher input costs and serious market demand, both global and domestic, impacting the performance of the company. The high cost of production due to an increase in imported coking coal prices had an impact on the company’s bottom line. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realization.

The first quarter of FY2 had higher input costs and subdued market demand, both global and domestic, impacting the performance of the company. The high cost of production due to high import prices of coking coal had an impact on the bottom line. The decline in global demand and prices for steel had a direct effect on the domestic market and price realisation. SAIL has infrastructure projects to gain momentum, which will boost the demand for their products. They are confident of improved performances in the second half of the current financial year with a significant reduction in the price of imported coal and an uptick in demand.

Valuations:
The EPS for SAIL is Rs. 22.2. The ROE and ROCE were at 25.1% and 24.3%, respectively. The EBITDA ratio is 2.52. While the P/B ratio is 0.62, The P/E ratio is at 3.58 times, whereas the 5 year P/E is at 4.49 times. The scrip closed at Rs.81.6, down by 3.49%.

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