JK Cement Q2 Profit Falls 28% as Revenue and Volumes Dip

27 Oct 2024 , 10:59 AM

JK Cement Ltd reported a 28.3% year-over-year drop in net profit, standing at ₹125.8 Crore for Q2 ending September 30, 2024, compared to ₹175.4 Crore in the same quarter last year.

Revenue from operations declined by 7%, reaching ₹2,560 Crore against ₹2,752.8 Crore from the previous year’s corresponding period. The company’s EBITDA fell 39.2%, amounting to ₹284 Crore in the second quarter of FY25, down from ₹467 Crore last year; the EBITDA margin also decreased to 11.1% from 17%.

Capacity utilization for Q2 FY25 was 64% for cement production and 67% for clinker, influenced by operational disruptions at the Muddapur facility.

Production costs rose by approximately ₹10 Crore due to a planned shutdown at the Muddapur plant, which required additional clinker purchases to maintain production. Cement volume for the quarter dropped to 3.80 million tonnes, down from 4.33 million tonnes in Q1 FY25.

Despite lower volumes, JK Cement improved net sales realization per ton to ₹4,708, compared to ₹4,669 in the previous quarter, owing to strategic targeting of high-revenue markets.