Cement shares rise 4% after company’s net profit surges 63% year-on-year

Shares of the mid-cap company rose 4 percent after the company’s net profit and revenue rose 63 percent and 2 percent year-on-year, respectively, in the first quarter of fiscal 2025.

With a market capitalization of Rs 34,238.18 crore, the shares of JK Cement BV were trading at Rs 4,443.95 per share, up about 3.76 percent from the previous closing price of Rs 4,271.40 per share.

Reason for the rise:-

According to the company filing, JK Cement Ltd.’s revenue declined 9 percent QoQ to Rs.2,808 crore in Q1FY25 from Rs.3,106 crore in Q4FY24. Further, revenue increased 2 percent YoY to Rs.2,808 crore in Q1FY25 from Rs.2,763 crore in Q1FY24.

JK Cement Ltd’s net profit declined 15 percent quarter-on-quarter from Rs. 220 crore in Q4FY24 to Rs. 185 crore in Q1FY25. Further, the net profit also increased 63 percent year-on-year from Rs. 113 crore in Q1FY24 to Rs. 185 crore in Q1FY25.

Geographical presence and manufacturing facility:

JK Cement has presence in Northern, Central, Southern and Western regions and sales are spread across 19 states. The company also has an international market presence for White Cement in 32 countries. In total it has 94,000 Grey & White Cement Dealers & Retailers.

JK Cement operates 15 production units with a total capacity of 22.3 MTPA for grey cement and 3.05 MTPA for white cement and wall putty.

Overall, the company achieved a capacity utilisation rate of 81 per cent in FY24. The recently commissioned Ujjain Grinding Unit, with a capacity of 1.5 MTPA from November 2023, achieved a capacity utilisation of 60 per cent in Q4 FY24.

Expansion plan:-

The company is expanding its grey cement capacity at Prayagraj by 2.0 MTPA, which is expected to be commissioned in Q2 FY25. JK Cement is also setting up a new manufacturing unit at Panna, MP with a clinker line capacity of 3.3 MTPA and 1 MTPA cement capacity with a capex of Rs. 2,300 Cr, which is expected to be commissioned in Q2 FY26.

Further, the company has earmarked Rs 1,500 cr for expansion project of Panna Line-2 and Rs 500 Crore for multiple purposes including equilibrium capex for WHRS at Muddapur, upscaling of paint operations for FY25. The total capacity of the company is targeted to reach 30 MnTPA by FY26.

Company Profile:-

JK Cement Ltd. is an India based company. The company manufactures and sells cement and related goods. The company is active in many categories including grey cement, white cement and related goods.

Written by:- Abhishek Singh

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