J.K. Cement (532644) Q3 24/25 earnings summary

Executive summary

• Q3 net sales ranged from INR 2,606 crores to ₹2,930.28 Cr, with sequential growth but a slight year-over-year decline; consolidated net profit for Q3 was between ₹189.87 Cr and INR 205 crores.

• Q3 EBITDA was reported between INR 489 crores and ₹492 crore, up over 73% sequentially but down year-over-year.

• Board approved acquisition of 60% equity in Saifco Cements (J&K) for INR 174 crores, expanding presence in Jammu & Kashmir.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 Dec 2024 were approved and published.

• Approval granted for incorporation of a wholly owned Section 8 company to promote startups and incubators.

Financial highlights

• Q3 EBITDA margin improved to 18.7% standalone, with consolidated margin at 16.79%; Q3 EBITDA per ton was INR 1,040, up sequentially but down year-over-year.

• Net debt ranged from INR 2,582 crores to INR 3,108 crores; net debt to EBITDA was reported at both 1.29x and 1.74x.

• 9-month consolidated net sales were between INR 7,493 crores and ₹8,297.97 Cr, with EBITDA down 15-16% year-over-year.

• Standalone Q3 EPS was 26.51, consolidated Q3 EPS was 24.54.

• Incentives contributed around INR 85-90 crores in Q3, including a one-time INR 10-15 crores for prior period items.

Outlook and guidance

• FY26 volume growth guided at 10% from FY25 exit levels; premium cement share targeted to exceed 20% in two years.

• Paints business expected to reach INR 450 crores revenue in FY26 and INR 600 crores in FY27, with EBITDA break-even by FY27.

• 6 MTPA grey cement capacity expansion progressing, with Bihar unit commissioning by December 2025.

• Amalgamation of Toshali Cement Private Limited is underway, pending regulatory approval.

• Q4 profitability will depend on price increases over Q3; incremental EBITDA expected from any price rise.