*Jk cement Ltd Q4FY20 Concall highlights*
*Outlook positive*
Sales volume for the quarter stood at 2.66mnt up by 7%yoy and 4%qoq.
The gross debt as on march20 stood at Rs 2621cr and net debt at Rs 1617cr. With net debt/equity at 0.52x
*Update on project expansion*
The 3.2 mnt out of the total 4.3mnt mangol expansion has been commissioned, the grinding unit at balasinor of 0.7mnt is expected to commission by Oct20.
The total amount spend for the mangol expansion till now is Rs1495cr.
The company has also taken up line 3 modernization, the work is at the advance stage.the project cost is Rs400cr and have spent about Rs 140cr till now. This is expected to get commissioned by Dec 20.
*Capex*
Management has guided the capex of Rs 650-700cr for FY21.
*Net debt guidancefor FY21 stands at ~Rs2000cr. Gross debt at ~Rs 3500*
Post the expansion of the existing projects, the company will take a decision to invest in panna to expand the capacity to 3-3.5mnt (integrated plant).
The company has already acquired 80% of the land remaining 20% will be serviced by the end of this fiscal and get environmental clearance.
There was Rs 75cr professional payout for FY20, Management expect a drop of 20-25% in the professional charges in FY21-.
Rs 20-25cr of amount were reversed this quarter as the company was not able to deliver the volume.
The white cement segment volume remained flat Q0Q but improved by 4%yoy. The margin for the segment was impacted by 2-3% due to higher expenses on branding and marketing. Management expect the margin to stabilize in the second half of FY21.
Company has taken lot of cost saving measures. Whose benefits will be reaped from FY21 /22.
Major cost savings will come from power and fuel cost and logistics.
(Rs 100/t of cost saving is expected).