JK CEMENT Announces Quarterly Results (3QFY21); Net Profit Up 73.2%

Wed, 10 Feb

JK CEMENT has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

JK CEMENT Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	14,042	15,507	17,601	13.5%	25.3%
Other income	Rs m	237	287	303	5.6%	28.1%
Turnover	Rs m	14,278	15,794	17,904	13.4%	25.4%
Expenses	Rs m	11,264	11,400	13,113	15.0%	16.4%
Gross profit	Rs m	2,777	4,107	4,488	9.3%	61.6%
Depreciation	Rs m	556	597	622	4.2%	11.8%
Interest	Rs m	561	537	593	10.5%	5.7%
Profit before tax	Rs m	1,897	3,260	3,576	9.7%	88.5%
Tax	Rs m	521	1,025	1,194	16.5%	128.9%
Profit after tax	Rs m	1,376	2,235	2,383	6.6%	73.2%
Gross profit margin	%	19.8	26.5	25.5
Effective tax rate	%	27.5	31.4	33.4
Net profit margin	%	9.6	14.2	13.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 25.3% on a year-on-year (YoY) basis. The expenses were up by 16.4% YoY during the same period.
• The company's operating profit increased by 61.6% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 25.5% in 3QFY21 as against 19.8% in 3QFY20.
• Depreciation charges increased by 11.8% and finance costs increased by 5.7% YoY, respectively.
• Other income increased by 28.1% YoY during the quarter.
• Net profit for the quarter increased by 73.2% YoY. Net profit margins during the quarter increased from 9.6% in 3QFY20 to 13.3% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 13.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 15.0% QoQ during the same period.
• The company's operating profit increased by 9.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 25.5% in 3QFY21 as against 26.5% in 2QFY20.
• Net profit for the quarter increased by 6.6% QoQ, while net profit margins declined from 14.2% in 2QFY20 to 13.3% in 3QFY21.

To see how JK CEMENT has performed over the last eight quarters,please visit here.

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JK CEMENT Share Price Performance

Over the last one year, JK CEMENT share price has moved up from Rs 1,420.0 to Rs 2,397.5, registering a Gain of Rs 977.5 or around 68.8%.

Overall, the S&P BSE SENSEX is up 24.9% over the year.

Current Valuations

At the current price of Rs 2,397.5, the price to earnings (P/E) ratio of JK CEMENT stands at 31.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.5 times.