J.K. Cement (532644) Q2 24/25 earnings summary

Executive summary

• Net sales for Q2 FY25 ranged from INR 2,274 crores to INR 2,391.66 crores, down 9% sequentially and up to 8% year-over-year decline; H1 FY25 net sales ranged from INR 4,877 crores to INR 5,034.75 crores, down 3% year-over-year.

• EBITDA for Q2 FY25 was INR 273 crores, down 43% sequentially and 39% year-over-year; H1 FY25 EBITDA was INR 752 crores, down 11% year-over-year.

• Profit after tax for Q2 FY25 was INR 45 crores, down from INR 203 crores in the previous quarter and INR 179 crores year-over-year; H1 FY25 profit after tax was INR 247.88 crores to INR 321 crores.

• Board approved the amalgamation of Toshali Cements Pvt. Ltd. and in-principle sale of Toshali Logistics Pvt. Ltd., aiming for operational synergies and market expansion.

• Performance impacted by weak demand due to monsoons, internal shutdowns, and higher costs.

Financial highlights

• Operating expenses for Q2 FY25 were INR 2,119 crores, down 2% sequentially; standalone revenue for Q2 FY25 was INR 2,391.66 crores, with net profit at INR 45.20 crores.

• EPS for Q2 FY25 was INR 5.80, with H1 FY25 EPS at INR 32.08 (standalone) and INR 40.27 (consolidated).

• Net debt as of September 30 was INR 2,582 crores; net debt/EBITDA at 1.6x to 1.29x; net debt/equity at 0.56 to 0.48.

• Cash balance at quarter-end was INR 1,620 crores, down from INR 2,011 crores in March.

• One-time expenses of INR 45-50 crores impacted profitability in Q2.

Outlook and guidance

• Full-year grey cement volume growth now expected at 6-7%, revised down from 10%.

• Ongoing expansion to add 6 MTPA grey cement capacity, with commissioning scheduled for December 2025.

• Paint business expected to reach INR 250-300 crores topline in FY25, with breakeven targeted by FY27.

• Cost savings of INR 60 per ton expected by March, with further savings in FY26, totaling INR 150-200 per ton.

• Amalgamation of Toshali Cements expected to enhance operational efficiency and market reach in eastern India.