JK Cement reported a mixed financial performance for the first quarter of FY27, with higher revenue and strong sales volumes offset by weaker profitability due to increased operating costs.
The company's consolidated net profit declined 14.5 per cent year-on-year to Rs 277 crore in the April-June quarter from Rs 324 crore in the corresponding period last year. Revenue from operations rose 20.3 per cent to Rs 4,031.7 crore from Rs 3,352.5 crore a year earlier.
Operating performance remained under pressure during the quarter. EBITDA fell 5.8 per cent year-on-year to Rs 647.7 crore, while the EBITDA margin narrowed to 16.1 per cent from 20.5 per cent in the year-ago period.
The company said elevated maintenance and packaging costs impacted earnings during the quarter. However, better cement prices and higher white cement sales partly offset input cost pressures linked to the geopolitical situation.
Sales volumes remained strong across key segments. Combined volumes increased 18 per cent year-on-year, led by a 19 per cent rise in grey cement sales and an 11 per cent increase in white cement and wall putty volumes.
Grey cement dispatches stood at 5.96 million tonnes, up 18 per cent from a year ago. White cement volumes rose 29 per cent year-on-year to 0.54 million tonnes during the reporting quarter. The company attributed the volume growth to the ramp-up of its 6 MTPA capacity commissioned in the second half of FY26. Lower imports from the UAE also supported growth in the white cement business.
Expansion Plans Continue
JK Cement said it remains on track to increase its grey cement capacity from 32.3 MTPA to 40 MTPA by FY28 and further to 50 MTPA by FY30.
The company plans to invest between Rs 5,000 crore and Rs 6,000 crore over the next two years. The expansion includes a 7 MTPA greenfield plant at Jaisalmer and split grinding units at Bikaner and Bhatinda.
All three projects are scheduled for commissioning in the first half of FY28. A 6 lakh tonne wall putty plant at Nathdwara, Rajasthan, is also expected to become operational during the second quarter of FY27. JK Cement shares settled 0.65 per cent lower at Rs 5,393 on the NSE on Friday. |
