J K Cement to consider ₹500 Crore via NCD

15 Apr 2025 , 12:10 PM

J K Cement Ltd, one the country’s largest cement makers said on Friday, April 11, that its board will consider a proposal to raise up to ₹500 crore (₹5 billion) via the private placement of non-convertible debentures (NCDs).

The fundraising proposal will be considered at the company’s board meeting on 24 May 2025, and it will be subject to shareholder approval at its next 31st Annual General Meeting (AGM), if approved.

At the time, the board led by J K Cement will also review and approve the audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2025, which will help in preparing data for stock exchanges.

The board will also consider recommending final dividend on equity shares for FY 2024–25, to its shareholders for approval. The proposed issuance of ₹500 crore of NCDs may be done in one or more tranches over a period of 12 months from the date of the AGM.

On the financial side, J K Cement registered a 33.2% year-on-year fall in net profit for the third quarter (Q3FY25), recording ₹189.6 crore as compared to ₹283.8 crore in the equivalent quarter of the previous financial year.

The company’s revenue for the quarter ended Q3FY25 was ₹2,930.3 crore against ₹2,934.8 crore in the corresponding quarter Q3FY24 (down 0.2%). The quarter’s EBITDA fell 21.2% to ₹492.2 crore, compared with ₹625 crore in the year-ago period. The EBITDA margin was down at 16.8%, versus the year-ago quarter’s 21.3%, showcasing pressure on operating performance.

The company plans to use the proceeds from the fundraise via NCDs for its strategic and operational needs, while creating an opportunity for the board to consider dividend payment is in line with the company’s continued focus on shareholder value creation.