JK Cement Q1 profit drops over 14 pc to Rs 278 crore as margins contract
New Delhi, July 18
JK Cement Ltd on Saturday reported a 14.5 per cent year-on-year decline in consolidated net profit to Rs 278 crore for the first quarter of FY27 despite revenue from operations posting strong double-digit growth.
The company's profit attributable to shareholders stood at Rs 278 crore for the quarter ended June 30, compared with Rs 324 crore in the corresponding quarter of the previous financial year, according to an exchange filing.
Meanwhile, operating performance weakened during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 5.8 per cent to Rs 648 crore from Rs 688 crore in the year-ago period.
The EBITDA margin narrowed sharply to 16.1 per cent from 20.5 per cent, as higher pet coke prices, elevated diesel costs amid geopolitical developments and increased maintenance expenditure weighed on profitability despite higher sales.
Revenue from operations rose 20.3 per cent to Rs 4,032 crore during the April-June quarter from Rs 3,353 crore a year earlier.
As of June 30, the company's net debt stood at Rs 3,864 crore, compared with Rs 3,370 crore at the end of March, while the net debt-to-equity ratio was 0.53 times.
Shares of JK Cement ended 0.65 per cent lower at Rs 5,388.90 apiece on the BSE on Friday, underperforming the benchmark Sensex, which gained 1.09 per cent.
The stock has declined nearly 16 per cent over the past one year, compared with a nearly 5 per cent gain in the Sensex during the same period. Over the last six months, it has fallen around 8.5 per cent, against a 6.5 per cent decline in the benchmark.
The stock has touched a 52-week high of Rs 7,565 and a 52-week low of Rs 4,670.05 on the BSE.
— IANS
Reader Comments
JK Cement has been a solid player for decades. This is just a temporary blip due to global commodity volatility. Their revenue growth shows demand is strong — likely from government's infrastructure push (think highways and housing schemes). Hold tight for recovery in H2. 📈
Stock down 16% in one year while Sensex is up 5%? Ouch. Investors must be feeling the heat. But companies like JK Cement usually have strong fundamentals — maybe it's time to buy the dip if you believe in the long-term infrastructure story. Just my two rupees! 💭
Net debt up to Rs 3,864 crore from Rs 3,370 crore in just 3 months. That's concerning — even though debt-to-equity is still manageable at 0.53. Management should focus on reducing leverage before interest costs eat further into profits. Margin pressure is real in this sector. 🧐
As someone who follows Indian markets from abroad, this is typical of cement sector right now. Strong volume growth (which explains revenue jump) but input costs are squeezing everyone — not just JK. The real test will be whether they can pass on costs to consumers without losing market share. Will be watching Q2 closely. 🌏
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