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Shri Keshav Cements & Infra Ltd

Shri Keshav Cements & Infra Ltd (Formerly Katwa Udyog Ltd) – Capacity Expansion Play on Cement

Shree Keshav Cements & Infrastructure Ltd (formerly Katwa Udyog Ltd)

Shri Keshav Cement & Infra. Ltd. (KCIL) (Formerly KATWA UDYOG LIMITED) is Public limited Company incorporated in the year 1993 to manufacture 43 grade and 53 grade Ordinary Portland Cement. The company raised capital via IPO during 1995.

The inception of the company began with acquisition of a sick cement plant of 20 TPD (Tons per day) in 1994. The capacity of the plant was gradually increased year after year to reach 600 TPD. The acquisition of cement plant of Shri Quality Cements Ltd, Lokapur had added 300 TPD to the existing capacity. The company is undertaking an expansion project to increase the output to 3000 TPD which is one million tonnes per annum.

Structure of the Group

Keshav Cements & Infra Ltd (KCIL) Current Capacity Future Capacity Plans
      Kaladagi plant Acquisition from Sangam Cements from KSFC 200 tpd ie. 0.07mio tonnes per annum       FY 18 capacity – 0.27 mio tonnes per annum

 

      Lokapur plant Acquisition Shri Quality Cement Ltd form IDBI 150 tpd i.e. 0.05mio tonnes per annum
Katwa Finlease Ltd Part of promoter group Hire purchase of automobiles
Katwa Infotech Ltd Part of the promoter group Software services in Healthcare, manufacturing and BPO operations
Katwa Construction Ltd Part of the promoter group – plans to merge with KCIL (flagship company) Construction of luxurious flats for NRIs
Katwa Oil Ltd Part of promoter group Under liquidation
Katwa Finance & Investment Ltd Part of promoter group Not much information available publicly
Katwa Inc Overseas subsidiary of Katwa Infotech Medical transcription and other services in the US

Grade – Grade 43 & Grade 53 Ordinary Portland cement

Brands – Jyoti Power, Jyoti Gold

Markets – Maharashtra, Karnataka, Goa

Managerial remuneration

Reasonable compared to standards in the industry.

  • Vilas Katwa  (MD) –  Rs 50,000 pm
  • Deepak Katwa (Director – CFO) – Rs 25,000 pm

Shareholding of the promoters

Year 2012 2013 2014 2015 2016 2017
Promoter Holdings 63.81% 65.81% 67.81% 67.81% 67.81% 67.81%

Promoters’ shareholding is comfortable with 2/3rds of the equity being held by them.

Related Party Transaction

  • Loans from Promoters – o/s as on 31.03.2015 is INR 11.27 crs
  • Interest paid on such loans is ~ 10% p.a. which is as per market standards

Financial Analysis

Cash Flow Analysis

Narration (Rs Crs) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Cash from Operating Activity 5.72 4.67 7.66 7.77 14.46 1.29
Cash from Investing Activity -4.42 -4.40 -4.17 -1.25 -8.44 -32.66
Cash from Financing Activity -1.47 0.37 -4.15 -6.49 -6.22 37.04
Net Cash Flow -0.17 0.64 -0.66 0.03 -0.20 5.69
  • Company is consistently generating cash from operations over years which is being used to repay debt and invest in plant & machinery (capex)
  • 2017 has been a watershed year for the company with a huge capex expense of INR 32 crs. The company took a term loan of approx. INR 35 crs for the same as we see in the balance sheet.
  • Essentially the company has been expanding thru internal accruals except for a major expansion which was undertaken in FY 17
Narration (Rs Crs) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Total
Net profit after Tax (PAT) 1.23 1.76 1.62 2.91 4.22 0.73 12.47
Cash from Operating activity 5.72 4.67 7.66 7.77 14.46 1.29 41.57

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