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Informist, Saturday, Jan. 17, 2026

 

--JK Cement Oct-Dec net profit INR 1.81 bln 

--JK Cement Oct-Dec revenue INR 32.13 bln 

--Analysts saw JK Cement Oct-Dec revenue INR 30.86 bln 

--Analysts saw JK Cement Oct-Dec net profit INR 2.09 bln 

--JK Cement Oct-Dec net profit INR 1.81 bln vs INR 2.00 bln year ago 

--JK Cement Oct-Dec revenue INR 32.13 bln vs INR 27.39 bln year ago 

--JK Cement Apr-Dec net profit INR 6.89 bln vs INR 4.39 bln year ago 

--JK Cement Apr-Dec revenue INR 92.61 bln vs INR 78.09 bln year ago 

 

By Pallavi Singhal

 

NEW DELHI – JK Cement Ltd. reported a marginal decline in its December quarter net profit, as higher operating costs, particularly freight, power and fuel, along with employee expenses, outweighed the benefit of strong revenue growth and improved volumes. Additionally, a one-off expense related to the statutory impact of new labour codes, amounting to about INR 460 million hit the company's earnings.

 

JK Cement's net profit fell nearly 10% on year to INR 1.81 billion in Oct–Dec from INR 2.00 billion a year earlier. Adjusted for the exceptional charge, standalone net profit for the quarter would have been about INR 2.27 billion. Analysts had estimated the company's net profit at INR 2.09 billion.

 

The company's revenue from operations rose over 17% on year to INR 32.13 billion. The revenue beat the Street's expectations of INR 30.86 billion for the quarter.

 

The strong growth in revenue was driven by higher cement dispatches and improved realisations, supported by capacity additions during the December quarter. The company expanded its cement grinding capacity at Panna Line 2 as well as its Hamirpur units by 1 million tonnes per annum each and commissioned the 3.3 million tonnes per annum clinker Line–2 at Panna plant.  

 

However, the benefit of higher sales was largely absorbed by a sharp rise in operating expenses during the quarter. Total expenses rose nearly 18% on year to INR 29.37 billion, outpacing revenue growth of 17%.

 

Freight and forwarding expenses were up over 22% on year to INR 7.54 billion, while power and fuel costs rose nearly 17% on year to INR 6.55 billion. Employee benefit expenses also increased and were up 11% on year to INR 2.59 billion. Finance costs were down 4% on year to INR 1.13 billion, while depreciation and amortisation expenses rose nearly 19% on year to INR 1.75 billion, reflecting commissioning of new capacities and capital expenditure.

 

The company's operating margin declined on year to 16.67% in the December quarter from 17.74% a year earlier, while net profit margin fell to 5.54% from 7.18%, on higher operating costs and the impact of the one-off labour-code charges.

 

For the nine months ended December, JK Cement reported a net profit of INR 6.89 billion, up from INR 4.39 billion in the year-ago period, while revenue increased nearly 19% on year to INR 92.61 billion from INR 78.09 billion.

 

Grey cement remained the primary growth driver in the December quarter. Grey cement sales volumes rose 22% on year, supported by robust demand and an expanded footprint in the central and eastern markets, the company said in its presentation. In value terms, net sales of grey cement increased 22% on year to INR 25.11 billion, compared with INR 20.68 billion in the year-ago quarter. On a sequential basis, grey cement net sales rose 17% quarter-on-quarter, on higher dispatches following capacity additions.

 

The white cement and wall putty segment also reported steady growth. Sales volumes in this segment were up 12% on year during the quarter. White cement net sales increased about 8% on year to INR 5.35 billion, from INR 4.96 billion in the corresponding quarter of the previous financial year.

 

Capacity utilisation remained strong during the quarter. Grey cement capacity utilisation stood at 83%, while clinker utilisation was higher at 97%. Blended cement accounted for 64% of grey cement sales, down around 3% sequentially.

 

Pricing and mix moderated sequentially. Net sales realisation for grey cement declined to INR 4,724 per tonne in the reporting quarter from INR 4,847 per tonne in the preceding quarter. Trade sales accounted for 60% of total grey cement volumes, down from 67% in the previous quarter, while premium products contributed about 17% of trade sales, the presentation showed.

 

On Friday, shares of the company closed 3% higher at INR 5,885 on the National Stock Exchange.  End

 

Edited by Vandana Hingorani

 

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