JK Cement Q3 Results: Profit Declines 33%, But Exceeds Estimates
JK Cement Ltd. has reported a 33.2% year-on-year decrease in its consolidated net profit for the third quarter of fiscal year 2025, falling to ₹190 crore. This decline is primarily attributed to higher employee and freight costs, which impacted the company's margins, despite an increase in overall sales volume. However, the reported profit still surpassed analyst consensus estimates, which had projected a net profit of ₹165.9 crore.
The company's capacity as of December stands at 24.34 million tonnes per annum. In addition to the financial results, the board also approved a 60% stake acquisition of Saifo Cements Private Ltd. for a total of ₹174 crore.
Key Highlights of JK Cement's Q3 FY25 Results (Consolidated, YoY)
- Revenue: Down 0.2% to ₹2,930 crore
- EBITDA: Down 21.3% to ₹492 crore
- Margins: 16.8% versus 21.3%
- Net Profit: Down 33.2% to ₹190 crore
Factors Impacting Earnings
The company's revenue remained relatively flat due to limited improvement in realisations. Despite a 13% quarter-on-quarter and 5% year-on-year increase in total volumes, the company's realisations grew only slightly to ₹4,757 per tonne compared to ₹4,708 per tonne in the previous quarter.
The company's EBITDA was significantly impacted by a muted topline and increased employee benefit and freight costs. Additionally, there was a notable decrease in the reversal of inventory, which stood at ₹41.15 crore compared to ₹138.44 crore a year ago. However, it's important to note that employee and other expenses per tonne decreased by 11%-16%, and fuel costs also saw a 17% reduction, falling to ₹745 per tonne.
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