JK Cement Q4 results preview: Cement maker's profit likely to fall 26%, margin may shrink by 380 bps

JK Cement Q4 results preview, JK Cement Q4 results date: JK Cement is all set to report its financial results for the quarter ended March 2023 on Saturday, May 27. Analysts expect the cement company to report a weak quarterly performance owing to higher depreciation and finance cost. According to Zee Business research, JK Cement’s quarterly standalone net profit is estimated at Rs 148.1 crore for the three-month period — which translates to a fall of 25.6 per cent on a year-on-year basis.

Its consolidated revenue is likely to drop 13.5 per cent to Rs 2,668.9 crore compared with the corresponding period a year ago (Rs 2,351 crore), according to the research. The company is estimated to report Rs 333.7 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) for the quarter, as against Rs 384 crore, a decline of 13.1 per cent for the year-ago quarter.

The Zee Business analysts peg JK Cement of India’s margin — a key measure of profitability for a business — at 12.5 per cent as against 16.3 per cent logged a year ago. Margin pressure is expected due to an increase in cost.

As per the Zee Business research grey cement volumes are estimated to grow by 16 per cent whereas grey cement realization is estimated to grow 1 per cent on both year-over-year (YOY)/quarter-on-quarter (QoQ) basis. Volume growth is expected to be driven by new capacity in central India.

White cement volume may decline by 1 per cent YOY whereas white cement's realization is expected to be up 6 per cent YoY and 1 per cent QoQ. Zee Business analysts forecast it to grow.
As of May 25, JK Cement shares have grown nearly 26 per cent in value in the last one year, in line with a 13 per cent rise in the benchmark Nifty index.

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