The shares of this midcap company gained up to 4 percent after the company’s net profit and revenue increased by 63 percent and 2 percent YoY, respectively in Q1FY25.
With a market capitalization of Rs 34,238.18 crore, the shares of J.K. Cement Ltd were trading at Rs 4,443.95 per share, increasing around 3.76 percent as compared to the previous closing price of Rs 4,271.40 apiece.
Reason for Rise:-
According to the company filing, J.K. Cement Ltd’s revenue plummeted by 9 percent on a quarter-on-quarter basis from Rs.3,106 crores in Q4FY24 to Rs. 2,808 crores in Q1FY25. Further, revenue magnified by 2 percent year on year from Rs 2,763 crores in Q1FY24 to Rs. 2,808 crores in Q1FY25.
J.K. Cement Ltd’s net profit decreased by 15 percent on a quarter-on-quarter basis from Rs. 220 crores in Q4FY24 to Rs 185 in Q1FY25. Further, on a year-on-year basis also net profit magnified by 63 from Rs. 113 crores in Q1FY24 to Rs. 185 crores in Q1FY25.
Geographical presence & Manufacturer facility:-
J.K. Cement has a presence across the north, central, south, and west regions and sales are spread over 19 states. The company has also an international market presence for White Cement in 32 countries. Overall it has 94,000 Grey & White Cement Dealers & Retailers.
J.K. Cement operates 15 manufacturing plants with a total capacity of 22.3 MTPA for grey cement and 3.05 MTPA for white cement & wall putty.
Overall, the company achieved a capacity utilization rate of 81 percent in FY24. The newly commissioned Ujjain Grinding Unit, with a capacity of 1.5 MTPA starting from November 2023, achieved a 60 percent capacity utilization in Q4 FY24.
Expansion plan:-
The company is expanding its grey cement capacity in Prayagraj by 2.0 MTPA which is expected to be commissioned in the Q2 FY25, JK cement also setting up a greenfield manufacturing unit at Panna, MP with 3.3 MTPA Clinker Line-2 & 1 MTPA cement capacity with a capex of Rs. 2,300 Cr and is expected to be commissioned in Q2 FY26.
Moreover, for FY25, the company has reserved Rs 1,500 cr for an expansion project of Panna Line-2 and Rs 500 Crore for multiple purposes including balance capex for WHRS at Muddapur, upgradation of paints business. The total capacity of the company is to reach 30 MnTPA by FY26.
Company profile:-
J.K. Cement Ltd. is an Indian-based firm. The company manufactures and sells cement and its associated goods. The Company operates in many categories, including grey cement, white cement, and associated goods.
Written by:- Abhishek Singh
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