JK Cement Ltd has taken a strategic step towards reinforcing its market position by securing a long-term limestone supply agreement with Gujarat Mineral Development Corporation Ltd. (GMDC). This agreement follows JK Cement’s successful bid for a 250 million tonne (MT) limestone supply from GMDC’s Lakhpat Punrajpur Mines, situated in Kutch, Gujarat.
Limestone is a critical raw material in cement manufacturing, and securing a long-term supply provides stability and operational efficiency. By winning the GMDC tender, JK Cement has ensured a reliable high-quality limestone supply, which will support its manufacturing processes and long-term expansion strategy.
This agreement is particularly significant as it aids JK Cement’s consolidation in western India, strengthening its market presence in Gujarat and nearby regions.
JK Cement has announced its intention to acquire a 60% stake in Saifco Cements, marking its entry into Jammu & Kashmir’s cement market. The proposed acquisition, valued at ₹174 crore, includes Saifco’s integrated manufacturing facility located in Khunmoh, Srinagar.
Spanning 54 acres, the Saifco unit has a clinker production capacity of 0.26 million tonnes per annum (MTPA) and a grinding capacity of 0.42 MTPA. The company also holds captive limestone reserves covering 144.25 hectares, with total extractable reserves estimated at 129 million tonnes.
JK Cement has stated that this acquisition is expected to support its presence in the Jammu & Kashmir region, an area with ongoing infrastructure development activities.
JK Cement Ltd reported a decline in consolidated net profits for Q3 of the financial year 2025. The company’s net profit fell by 33.2% to ₹190 crore during the October-December quarter, compared to ₹284 crore in the same period last year.
While total revenues remained largely unchanged, this was attributed to moderate improvement in realisations. The company’s total volumes increased by 13% quarter-on-quarter and 5% year-on-year, despite a subdued demand environment. Meanwhile, realisations rose to ₹4,757 per tonne, compared to ₹4,708 per tonne in the previous quarter.
The company’s EBITDA was impacted primarily due to a muted topline, higher employee benefit costs, and increased freight expenses. Additionally, there was a significant reduction in inventory reversal, amounting to ₹41.15 crore, compared to ₹138.44 crore a year ago.
At 9:39 AM on January 30, 2025, JK Cement shares traded at ₹4,860.80 per share on the NSE.
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Published on: Jan 30, 2025, 2:40 PM IST
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