JK Cement Q3 Results: Profit Falls 33%, But Beats Estimates
JK Cement’s Q3 FY25 consolidated net profit fell 33.2% year-on-year to Rs 190 crore, as higher employee and freight costs impacted margins, despite volume growth.
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JK Cement Ltd. posted a fall in consolidated net profits in the third quarter of financial year 2025.
The cement manufacturer reported a 33.2% decrease in its net profit to Rs 190 crore in the October-December quarter, compared to Rs 284 crore a year ago. Analyst consensus estimates polled the net profit at Rs 165.9 crore.
The company's capacity as of December stands at 24.34 million tonnes per annum. The board also approved a 60% stake acquisition of Saifo Cements Private Ltd. for a total of Rs 174 crore.
JK Cement Q3 FY25 Highlights (Consolidated, YoY)
Revenue down 0.2% to Rs 2,930 crore versus Rs 2,935 crore (Bloomberg Estimate: Rs 2861.4 crore).
Ebitda down 21.3% to Rs 492 crore versus Rs 625 crore (Bloomberg Estimate: Rs 461.1 crore).
Margins at 16.8% versus 21.3% (Bloomberg Estimate: 16%).
Net profit down 33.2% to Rs 190 crore versus Rs 284 crore (Bloomberg Estimate: Rs 169.5 crore).
What Impacted Earnings?
The company's revenues remained flat due to lower improvement in realisations. While JK Cement's total volumes did see a 13% quarter-on-quarter rise and a 5% year-on-year rise despite weak demand, the company's realisations grew to Rs 4,757 per tonnene versus Rs 4,708 per tonnene last quarter.
The company's Ebitda was mainly impacted by a muted topline and higher employee benefit and freight costs. Additionally, the company saw a reversal of inventory of only Rs 41.15 crore versus Rs 138.44 crore a year ago. However, it is key to note that the company's employee and other expenses per tonne did see an 11%-16% drop, and the company's fuel costs also decreased 17% to Rs 745 per tonne.
