JK Cement Profit Dips 8.5% as Sales Climb 18% in Q3

INDUSTRIAL-GOODSSERVICES

Overview

JK Cement Ltd reported a consolidated profit decline of 8.56% to ₹173.6 crore for the December quarter. Despite an 18.18% surge in revenue to ₹3,463 crore, total expenses rose by 18.42%. Volume sales of grey cement grew 23% year-on-year, though EBITDA per tonne fell to ₹928 from ₹1,022.

JK Cement Ltd. posted a consolidated profit of ₹173.61 crore for the third quarter ending December, marking an 8.56% decrease from the ₹189.87 crore recorded in the same period last year.

The company's revenue from operations, however, saw a significant jump of 18.18%, reaching ₹3,463.07 crore. This rise was overshadowed by a corresponding increase in total expenses, which climbed 18.42% to ₹3,192.91 crore during the quarter.

Volume Growth Masks Margin Pressure

Volume sales of grey cement demonstrated robust growth, increasing by 23% on a year-on-year basis to 5.36 million tonnes. This expansion indicates strong demand for JK Cement's products.

Despite the higher sales volumes, profitability per tonne compressed. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per tonne stood at ₹928, a notable drop from ₹1,022 in the prior year's comparable quarter. This suggests rising input costs or pricing pressures affecting margins.

JK Cement operates with a substantial production capacity, boasting 28.26 MTPA for grey cement, 3.05 MTPA for white cement, and wall putty facilities. Total income, including other income, grew 17.95% to ₹3,509 crore.

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