JK Cement profit rises 8% in Q2 to ₹173 crore; to set up ₹130 crore paints plant in Telangana
JK Cement's September quarter profit rose 8% year-on-year to ₹173 crore, while revenue increased 24% to ₹3,733.4 crore. Its subsidiary, JK Maxx Paints, will set up a 75,000 KLPA water-based paints plant in Telangana with an estimated investment of ₹130 crore.
JK Cement reported its second-quarter results on Saturday, October 24, with net profit rising 8% year-on-year to ₹173 crore in the September quarter of FY27, compared with ₹160.5 crore in the corresponding period last year.Revenue from operations rose 24% YoY to ₹3,733.4 crore from ₹3,019.2 crore a year earlier. Earnings before interest, taxes, depreciation and amortisation increased 13.5% to ₹507.4 crore from ₹447 crore in the year-ago quarter.However, EBITDA margin contracted to 13.6% from 14.8% in the corresponding quarter last year.In a separate development, the company's board approved a proposal by its wholly owned subsidiary, JK Maxx Paints, to set up a new water-based paint manufacturing plant in Telangana with an annual capacity of 75,000 kilolitres .The proposed facility will be located at Raghunadhapalem in Telangana's Suryapet district and entail an estimated capital expenditure of ₹130 crore. The investment will be funded from the ₹600 crore already approved by the board for the paints business, stated the exchange filingThe new plant is expected to be commissioned within around 12 months of the commencement of construction, the company said in its exchange filing.JK Maxx Paints currently operates a 73,000 KLPA manufacturing facility in Bhiwadi, Rajasthan, which has a capacity utilisation rate of 60%.
The Bhiwadi plant is projected to reach full utilisation by FY28, the company said, citing the rationale for the proposed expansion.JK Cement's FY27 volume growth outlookEarlier in July, JK Cement had targeted volume growth of 13-15% for FY27 and aimed to sell 22.5-23 million tonnes of grey cement, supported by demand across key markets and capacity additions in Central India.The company had reported 18% volume growth in the April-June quarter of FY27, with market share gains in Uttar Pradesh, Madhya Pradesh and Bihar.Anuj Khandelwal, business head at JK Cement, had expected demand to strengthen in the second half of FY27 as activity picks up after the monsoon, maintenance costs ease and fuel and diesel costs potentially soften.While input costs were expected to remain elevated in the near term, Khandelwal had noted that cement prices remained resilient ahead of the seasonally weak September quarter.Shares of JK Cement ended nearly flat on Friday, slipping 0.09% to ₹4,854 on the NSE. The stock has declined 4% over the past month and 11.2% so far this year.
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