On Tuesday, the share price of the midcap company rose by 2% to its intraday high of Rs 4,401.80 per share from its previous close of Rs 4,313.15 after the Scheme of amalgamation between two subsidiaries Companies.
In the exchange filing, JK Cement Limited stated that JK Maxx Paints Limited, a wholly owned subsidiary, and Acro Paints Limited, a step-down subsidiary, had approved a merger that would combine Acro Paints and JK Maxx Paints. Both entities operate in similar industries and share common control and management.
The merger aims to simplify the corporate structure, consolidate resources, and capitalize on synergies for growth. It will result in a single entity with greater financial strength, better competitive positioning, and access to funding for expansion.
Looking at their financials for the December quarter, the net revenue of the company rose by 20.4% year on year from Rs 2,436 crores and Rs 2,935 crores and their net profit rose by 667% from Rs 37 crores to Rs 284 crores.
On a sequential basis, the company’s net revenue increased by 6.6% and the net profit rose by 61% from Q2FY23 to Q3FY24.
Furthermore, according to their investor presentation, the company plans to expand its cement production capacity with a 3.3 MTPA clinker line in Panna, Madhya Pradesh, and additional grinding capacities totaling 6.0 MTPA in Bihar, Panna, Hamirpur, and Prayagraj.
This Rs 2850 crore project will be funded through borrowing of Rs 1850 crore and internal funds. Implementation aims to complete the clinker line in 24 months and grinding capacities in 15 months after work begins.
J.K. Cement Ltd. is an Indian-based company. The company produces and sells cement and related products. The Company operates in several segments, including grey cement, white cement, and allied products.
Written by Sriram KV
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