JK Cement hits record high on good Q4 results, capacity expansion plan

The stock surged 11% to Rs 1,194, also its record high on BSE in early morning trade

JK Cement surged 11% to Rs 1,194, also its record high on BSE in early morning trade, after the company reported a strong 30% growth in its standalone net profit at Rs 91 crore for the fourth quarter ended March 2017 (Q4FY17). The company had profit of Rs 70 crore in the same quarter year ago.

Net sales of the company during quarter under review increased 7.7% at Rs 1,019 crore against Rs 946 crore in the corresponding quarter of previous fiscal. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved to 22.3% from 20.8% in previous year quarter.

The board of directors of the company has decided to expand the wall putty production capacity from existing 2 lakhs M.T. per annum to 4 lakhs MT per annum at J.K.White, Katni.

“The board also took note of increase in clinker production capacity by 3.30 lakhs tons per annum in Rajasthan grey cement plants by cooler modification and de-bottlenecking/up-gradations with the total cost of approximately Rs 50 crore. With this the overall grey cement clinker capacity of Rajasthan plants stands increases to 54.45 lakh tons per annum,” JK Cement said in a statement.

Meanwhile, the board has recommended a dividend of Rs 8 per equity share for the financial year ended on 31.03.2017.

At 9:41 am; the stock was up 6% at Rs 1,138 on BSE as compared to 0.46% rise in the S&P BSE Sensex. A combined 175,696 shares changed hands on the counter on BSE and NSE so far.