JK Lakshmi Cement Limited Q1 FY25 Earnings Call Summary
Performance Overview
• Date: August 1, 2024
• Moderated by: Vaibhav Agarwal, PhillipCapital
• Key Management: President Arun Kumar Shukla, CFO Sudhir Bidkar
• Challenges:
• Flat volume growth
• Declining pricing affecting profitability
• Seasonal demand fluctuations and election impacts
Operational Efficiencies
• Significant improvements in:
• Alternative fuel usage
• Renewable energy initiatives
• Plans to ramp up production at Udaipur Cement to 60% utilization by FY25.
Regional Performance
• Eastern Region:
• Outperformed North and West in EBITDA
• Focus on local markets and improved margins
• Expansion plans due to past capacity constraints
Financial Highlights
• Net Debt:
• Standalone: Rs. 325 crores
• Consolidated: Rs. 1,650 crores
• Non-Cement Revenues: Stable at Rs. 132 crores
• EBITDA Margins: Slight decline to 4%
• Realizations: Declined due to increased clinker sales and competitive pricing.
Market Strategy
• No dealer discounts this year; focus on cost reduction through:
• Renewable energy
• Alternative fuel resources (AFR)
• Technology optimization
• Distribution strategy emphasizes market consolidation over expansion.
Pricing Trends
• General decline of Rs. 5 to Rs. 7 across regions due to low demand and competition.
• Anticipated demand improvement in Q2, potentially leading to price increases.
Capital Expenditure (CAPEX)
• On track to spend Rs. 1,200 crores for FY25.
• Consolidated spending for Q1: Rs. 150-160 crores.
• Total projected spending for FY25: Rs. 1,500-1,650 crores.
Expansion Plans
• Northeast project completion expected by FY27.
• Capacity increase from 16.5 million tons to 25 million tons planned over the next few years.
• Udaipur plant utilization projected to reach 75% by FY26.
Additional Inquiries
• Clarifications on:
• Fuel consumption costs
• Udaipur Cement Works restructuring
• Lower consolidated PBT and EBITDA due to inter-unit profit elimination
• Ongoing capital expenditures and operational metrics enhancement suggested for investor presentations.
Conclusion
• Management remains optimistic about future demand and operational improvements despite current market challenges.

JK Lakshmi Cement Limited Conference Call Summary (May 27, 2024)
Company Performance and Future Plans
• Management Present: President Arun Kumar Shukla and CFO Sudhir Bidkar.
• Key Highlights:
• Improvement in EBITDA per ton.
• Increased renewable energy usage.
• Enhanced supply chain efficiency.
Expansion Projects
• Current Projects:
• New grinding unit in Surat.
• Significant project in Durg with a total CAPEX of approximately Rs. 2,500 crores.
• Northeast expansion in land acquisition phase.
Financial Insights
• Acquisition Payment Status:
• Rs. 125 crores paid of Rs. 330 crores total; project cost is Rs. 1,500 crores.
• Q4 Revenue Contributions:
• Non-cement revenue: Rs. 154 crores (RMC: Rs. 86 crores).
• EBITDA margin for non-cement revenue: 5%.
Cost Efficiency and Projections
• Cost Efficiency Strategies for FY '25:
• Focus on improving Total Specific Resource (TSR) and increasing renewable energy.
• Current TSR cost: 1.2 vs. conventional fuel cost: 1.68.
Capacity and Utilization
• Capacity Utilization:
• JK Lakshmi Cement: 89%, Udaipur: 90%, overall: 81%.
• Projected ramp-up: 70% in FY '25, 80% in FY '26.
Pricing and Market Outlook
• Pricing Trends:
• 5% decline in prices in Q4; stable outlook expected post-elections.
• Anticipated stable or slightly increased power and fuel costs.
Future Capital Expenditure
• Projected CAPEX:
• FY '25: Rs. 1,200 crores; FY '26: Rs. 1,000 crores.
• Total CAPEX over the next few years: approximately Rs. 4,000 crores.
Clinker Production and Ratios
• Production Figures:
• JK Lakshmi Cement: 69.96 lakh tons; Udaipur: 19.75 lakh tons.
• Cement-to-Clinker Production Ratio:
• Current ratio: 1.46 for FY '24; goal to increase to 1.5.
Conclusion
• Management expressed confidence in strategic initiatives and thanked participants for their inquiries.

JK Lakshmi Cement Limited Q3 and 9M FY '24 Earnings Conference Call Summary
Conference Call Overview
• Date: February 13, 2024
• Organized by: PhillipCapital (India) Pvt. Ltd.
• Key Management Present: President Arun Kumar Shukla, CFO Sudhir Bidkar
Performance Highlights
• Volume Growth:
• 6.6% growth over nine months
• Expected 8-10% growth in Q4 due to seasonal factors
• Profitability Reporting:
• Outsourced volumes removed for clearer profitability picture
Capital Expenditure (CAPEX) Plans
• Railway Siding Project:
• Cost: ₹325 crores
• Phases: First by September 2024, second by March 2026
• Durg Plant Expansion:
• New clinker line and four grinding units
• Total CAPEX: ₹2,500 crores
• Future Funding:
• Plans to raise ₹2,500 crores over three years for various projects
Market Strategy and Expansion
• Durg Expansion Rationale:
• Chosen over North markets due to capacity utilization and demand-supply dynamics
• Northeast Market Interest:
• Favorable conditions noted, but no timeline provided for project initiation
• Utilization Goals:
• UCWL aims for 60% in the first year, 75% in the second, and 80% thereafter
Financial Performance and Projections
• EBITDA Target:
• Consistent EBITDA of ₹1,000 per ton
• Debt Overview:
• Standalone gross debt: ₹700 crores, net debt: ₹50 crores
• Consolidated gross debt: ₹2,000 crores, net debt: ₹1,150 crores
• Future Debt Projections:
• Anticipated peak net debt of ₹3,500 crores in three years
Operational Updates
• Clinker Supply:
• Durg unit has 50 years of mineable reserves
• Green Power Share:
• Reached 44% this quarter, expected slight increase next quarter
• Fuel Cost Projections:
• Slight decrease anticipated in Q4
Challenges and Resolutions
• Conveyor Belt Project Delays:
• Procedural issues causing delays, resolution expected soon
• Brownfield Expansion:
• Surat grinding unit expansion proceeding as planned
Value-Added Products
• Management Strategy:
• In-house and outsourced management, quarterly purchases around ₹130-140 crores
• Financial Contribution:
• Value-added products contributed ₹134 crores with 5% margins
Conclusion
• Management expressed confidence in achieving growth and maintaining financial health, with a focus on strategic expansions and operational efficiency.

JK Lakshmi Cement Limited Conference Call Summary (November 6, 2023)
Earnings Discussion
• Q2 and H1 FY '24 Earnings: Hosted by PhillipCapital (India) Pvt. Ltd.
• Management Present: CFO Sudhir Bidkar and President Arun Kumar Shukla.
Key Highlights
• Volume Growth: Projected 12-15% growth for the fiscal year.
• Pricing Trends: Expected Rs. 50-100 increase per ton in the upcoming quarter.
• Expansion Plans:
• 2.5 million ton grinding unit in Udaipur to be expedited.
• 1.35 million ton project in Surat expected to start in H1 FY26.
Operational Metrics
• Trade Share: 62%
• Blended Ratio: 65%
• Non-Cement Revenue: Rs. 130 crores.
Infrastructure Updates
• Durg Railway Siding: Commissioning expected in Q2-Q3 next year.
• Conveyor Belt Approval: Pending.
Financial Insights
• Clinker Production: Plans to utilize outsourced grinding units in Gujarat and Punjab.
• Pet Coke Inventories: Three months' worth available, anticipating 5% reduction in power and fuel costs.
• Net Debt Position: Projected increase in gross debt due to expansion, but net debt stable.
Profitability and Capital Expenditures
• Unit EBITDA Increase: Rs. 140 attributed to better volumes and operational efficiencies.
• Capital Expenditures: Planned Rs. 1,200 crores for current year and Rs. 600 crores for next year.
Renewable Energy Initiatives
• Solar Power: Sourcing 40 MW for Durg plant, aiming for 80% renewable energy usage.
• Alternative Fuel Ratio (AFR): Currently at 4%, with plans to increase to 20%.
Market Dynamics
• Gujarat Market: Stable demand despite competition.
• Eastern Region Demand: Significant growth expected.
Future Expansion Considerations
• Surat Grinding Unit: Chosen for high demand and strategic market access.
• Debt-to-EBITDA Ratio Guidance: Long-term target remains at 3x.
Conclusion
• Clinker Production and Cement Sales: Reported 3.84 lakh tons of clinker production and 4.68 lakh tons of cement sales for the quarter.
• Q&A Session: Addressed various inquiries from analysts, concluding with thanks from management.

Communication Overview
• Date: September 5, 2023
• Organized by: PhillipCapital India Pvt. Ltd.
• Focus: Outcome of e-voting from the Annual General Meeting (AGM)
• Participants: CFO Sudhir Bidkar and moderator Vaibhav Agarwal
• Format: Recorded call with Q&A session
AGM Resolutions
• Resolutions Voted On:
• All but one resolution passed with strong shareholder support.
• Key resolutions included:
• Adoption of annual accounts
• Dividend approval
• Reappointment of the chairman (initially faced negative proxy advisor recommendations)
• Remuneration for chairman and cost auditor received favorable votes
• Borrowing Limits:
• Significant increase sought, justified for flexibility in acquisitions and investments.
• Investment Limits:
• Resolution faced opposition, passed with a simple majority.
Investor Q&A Highlights
• EBITDA Decline:
• Explained by adverse weather conditions; recovery anticipated in upcoming quarters.
• Capacity Expansion:
• New clinker capacity expected in Q3 FY24; cement capacity by Q2 FY25.
• Acquisition Strategy:
• Roadmap to reach 30 million tons capacity by 2030; openness to strategic acquisitions.
• Debt Management:
• Target net debt-to-EBITDA ratio of 3.5x to 4x, may temporarily increase during expansions.
• Market Conditions:
• July growth subdued; August saw nearly 10% increase; price hikes anticipated post-monsoon.
Regional Market Insights
• Price Increases:
• Eastern market: INR 10 to INR 12 per bag increase expected.
• Northern market: INR 10 increase; Western market: INR 5 to INR 8 increase.
• Acquisition of Sanghavi Industries:
• Confidence in market demand absorbing additional volumes without significant pricing impact.
• Future Clinker Expansions:
• Targeting northern market and parts of Madhya Pradesh and Uttar Pradesh.
Conclusion
• Call concluded with thanks from management and participants, emphasizing the company's strategic direction and commitment to growth.

JK Lakshmi Cement Limited Q1 FY24 Earnings Call Summary
Overview
• Date: July 28, 2023
• Moderated by: PhillipCapital (India) Pvt. Ltd.
• Key Management: President Arun Kumar Shukla, CFO Sudhir Bidkar
Performance Highlights
• Clinker capacity utilization: ~97%
• Cement utilization: 85%
• Regional performance:
• Eastern India: Growth >16%
• North and Western regions: Below industry averages
• Challenges: Volume and operating costs affected by regional issues, including the Biparjoy cyclone.
Future Outlook
• Optimism for recovery in Q3-Q4 post-monsoon.
• Opportunities identified in waste heat recovery and power cost enhancements.
Inorganic Growth Strategy
• Capacity increase target: 30 million tons by 2024 through brownfield and greenfield projects.
• Open to acquisitions if they align with valuation and strategic fit, with no specific upper limit on valuations.
Volume Growth and EBITDA Targets
• Volume growth goal: 19%
• EBITDA target: Rs. 1,000 per ton
• Strategies to achieve targets:
• Clinker production optimization
• External grinding partnerships
• Focus on high-realization sales areas
Concerns and Considerations
• Acquisition of Sanghi Cement: Need for careful funding evaluation for both acquisitions and organic growth.
• Delays in railway siding approvals previously hindered growth; now resolved.
Financial Metrics
• Non-cement sales: Rs. 133 crores out of total sales of Rs. 1,633 crores (operating margin: 4%).
• Plans to raise Rs. 2,500 crores for growth initiatives.
• Related party transactions: Rs. 302 crores with Udaipur Cement Works Limited.
Cost Management and Operational Efficiency
• Progress in logistics optimization and renewable energy usage.
• Target to increase renewable energy proportion from 30% to 37-40%.
• Potential merger with Udaipur Cement Works Limited in the future.
Production and Fuel Costs
• Clinker production: 16.65 lakh tons (standalone), 3.88 lakh tons (Udaipur).
• Fuel cost per kilocalorie: Rs. 2.23 (down from Rs. 2.42).
• Solar capacity: 40 MW, effective availability of 8-10 MW.
Financial Position
• Net debt: Rs. 1,000 crores.
• Debt-to-EBITDA target: 3 to 4 times during expansions.
• Current coal inventory: ~100 days.
• CAPEX projects for FY24: ~Rs. 400 crores, including waste heat recovery and solar initiatives.
Conclusion
• Management committed to shareholder interests and strategic growth despite recent challenges.

JK Lakshmi Cement Q4 and FY23 Earnings Conference Call Summary
Conference Call Overview
• Date: May 22, 2023
• Moderated by: PhillipCapital (India) Pvt. Ltd.
• Key Management Representatives:
• Arun Kumar Shukla (President)
• Sudhir Anna Bidkar (CFO)
Company Performance Insights
• Trade Share: Steady at 55%, with a goal to exceed 60%.
• EBITDA Improvement Target: Rs. 300 per ton over 18-24 months.
• Fuel Costs: Decline noted; fuel mix consists of 30% fuel, 53% Petcoke, and 17% other sources.
Expansion Plans
• Clinker Unit: Early commissioning planned; existing grinding stations in Gujarat to be utilized.
• M&A Opportunities: Open to acquisitions aligned with strategic goals; current net debt manageable.
Pricing and Cost Strategies
• Pricing Strategies: Progress in narrowing margin gap with peers; operational efficiencies contributing to improvements.
• Cost Reduction Areas:
• Premium product efficiency
• Logistics efficiency
• Increased use of alternative fuels (AFR)
Financial Projections
• Cement Sales Growth: 12% in FY23; target of 19% for FY24.
• Clinker Production: 67.16 lakh tons in FY23; new clinker line operational by Q3.
• CAPEX Plans:
• ₹850 crores spent on a new plant; additional ₹500 crores in FY24 and ₹300 crores in FY25.
Future Growth Strategies
• Ready-Mix Concrete (RMC) Plants: Plans to set up in strategic locations.
• Capacity Goals: Aim for 30 million tons through organic growth.
• Sustainability Initiatives: Funded by a proposed $200 million green bond issuance.
Operational Metrics
• Palanpur Grinding Unit: Capacity of 15,000 to 20,000 tons per month; used as needed.
• Volume Growth Expectations: 18-19% at consolidated and standalone levels.
Capital Allocation and Management
• Future Projects: Decisions on Durg and other projects to be made in coming years.
• Sales Figures: 6% growth in consolidated cement sales; effective cash management practices noted for low receivables.
Conclusion
• The call concluded with expressions of gratitude from management and participants.

JK Lakshmi Cement Q3 and 9 Months FY23 Earnings Conference Call Summary
Date and Organization
• Date of Call: February 13, 2023
• Organized by: PhillipCapital (India) Pvt. Ltd.
Management Representatives
• Key Speakers:
• Arun Kumar Shukla (President)
• Sudhir Bidkar (CFO)
Key Discussion Points
• Impact of Coal Prices:
• Lower South African coal prices affecting margins.
• Capacity Utilization:
• Current utilization at approximately 85%.
• Product Expansion:
• Focus on high-margin products like Ready-Mix Concrete (RMC) and AAC blocks.
• Margin Improvement:
• Optimism about future margin enhancements.
Investor Meeting Concerns
• Transparency Issues:
• Question raised about lack of notification to exchanges regarding investor meetings.
• Management clarified that all relevant presentations were uploaded on the company website.
• Selective Information Sharing:
• Concerns about transparency in information shared with investors.
Capital Expenditure (CAPEX) and Growth Projections
• CAPEX Details:
• ₹330 crores spent up to September, with an additional ₹250 crores expected in the current quarter and ₹200 crores projected for Q4, totaling around ₹700 crores for the year.
• Cement Production Growth:
• Targeting 12% to 15% growth in cement volume without external clinker purchases.
• Solar Power Project:
• 40-megawatt project operational by March 2024.
Value-Added Products and Market Performance
• Product Margins:
• Value-added products margins improved from 5% to 7% quarter-over-quarter.
• Limestone Lease Expiries:
• Most leases secure, except Sirohi (renewal due in 2030).
• Market Positioning:
• Efforts to narrow price gaps with competitors, especially in Western and Eastern India.
Regional Market Concerns
• Gujarat Market Performance:
• Concerns about widening price gap with competitors.
• Management acknowledged that price positioning will take time.
• Grinding Unit Performance:
• Expecting monthly volumes to exceed 50,000 tons.
Conclusion
• Management's Closing Remarks:
• Thanked participants for their engagement and reiterated focus on internal efficiencies and strategic planning.