JK Cement witnessed threefold jump in Q2 net profit
JK Cement reported almost three-fold jump in consolidated net profit at Rs 221.55 crore for the second quarter ended September 2020. The company had posted a net profit of Rs 79.50 crore in July-September period a year ago.
Revenue from operations rose 24.04% to Rs 1,634.39 crore during the quarter under review from Rs 1,317.63 crore in the year-ago period.
Thanks to the gradual resumption of overall economic activities, operations of the Group have started moving towards normalcy.
Total expenses rose 11.53% to Rs 1,338.93 crore from Rs 1,200.41 crore in the year-ago quarter.
Recently, JK Cement commissioned a 0.7mtpa grey cement grinding capacity in Gujarat and also began commercial dispatches. This expansion takes JK Cement’s total grey cement capacity to 14.67mtpa across Rajasthan, Uttar Pradesh and Gujarat.
Cement demand in north India is believed to be relatively less impacted by the pandemic. Even so, the north is a crowded market and foraying into other regions will give a fillip to the company’s volumes in the long-term.
JK Cement’s operations in Fujairah, UAE, has witnessed slow offtake. Further, the high debt has been a drag on its profitability.
Meanwhile, the growth in October-March half year would be higher than the first half of this fiscal. The growth would be supported by the new production capacities, which the company has added in the northern markets. The resurgence in demand will also help drive this growth momentum.
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