Lower volume and higher costs lead to missed earnings

Company

30 Oct 2024 | 5 Min Read

J K Cement's 2QFY25 consolidated EBITDA was at INR2.8b, down 39% YoY.

Gray cement volume guidance trimmed to ~6-7% YoY for FY25.

Capacity expansion plan of 6mtpa on track, cost-saving target of INR150-200/t.

EBITDA estimate reduced 8% for FY25E and 5% for FY26E/FY27E.

Reiterate BUY rating due to steady expansion plans, better regional mix, and cost-saving initiatives.

Consolidated financials and valuations show a decline in EBITDA and PAT.