JK Cement on Saturday posted its fiscal first quarter profit at Rs 185.31 crore, 65.6 per cent higher than Rs 111.92 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 2,807.57 crore, up 1.6 per cent as against Rs 2,762.63 crore reported during the same period of last fiscal year. The company EBITDA stood at Rs 371.5 crore, up 29 per cent on-year.
While the total income recorded by JK Cement came in at Rs 2,852.31 crore, total expenses incurred during the quarter was at Rs 2,579.14 crore.
JK Cement posted Q1 volume growth in single digit owing to general elections and extended heatwave, on YoY basis.
The company board also approved the change in designation of Madhavkrishna Singhania from Deputy Managing Director and Chief Executive Officer to Joint Managing Director and Chief Executive Officer of the company without any change in the existing, profile, terms & conditions including remuneration as approved by shareholders for the remaining period of his tenure.
Earlier, brokerage firms had predicted a muted growth at 2-3 per cent on-year for the cement companies due to a slowdown in construction activity because of the General Elections. The elections, heatwave situation and excess rainfall in some states that had impacted the demand, per a report by InCred Equities, also led to a decline in cement prices after a marginal price hike in April. However, per a report by ICRA, cement volumes are expected to rise by a healthy 7-8 per cent in FY2025, driven by healthy demand from infrastructure and housing sectors.
Pan India cement prices have fallen by Rs 3-4 /bag (around 1 per cent) month-on-month in May 2024 and by Rs 4-5 (around 1.5 per cent) till date in Q1FY25F, InCred Equities stated.