JK Cement Profit 650 Million

JK Cement Posts 65 Crore Profit

 

JK Cement reported a standalone net profit of Rs. 646.9 million for the second quarter ended September 30, 2018. The company had posted a net profit of Rs. 931.4 million in the July-September quarter a year ago. Total revenue during the quarter under review stood at Rs. 11.18 billion. It was Rs. 11.42 billion in the corresponding period last fiscal. Total expenses stood at Rs. 10.3 billion.

JK Cement has over four decades of experience in cement manufacturing. From modest beginning in the year 1974 with a capacity of 0.3 million tonnes at Nimbahera in Rajasthan, today JK Cement has 6 kilns of different capacities with a combined annual capacity of 10.5 million tonnes. Three cement units are located in Rajasthan at Nimbahera, Mangrol and Gotan, one unit in Jharli, Harayan and one unit in Karnataka at Muddapur. Today JK Cement has an installed grey cement capacity of 10.5 MTPA making it one of the top 10 cement companies in the country.

Indian Cement Industry News

Dalmia Cements' Good Knock

Dalmia Bharat Posts Q2 Results

India’s fourth largest cement manufacturer, Dalmia Cements posted Q2FY19 results that resonated with other industry majors. Double-digit volume growth drove cement sales, but profits took a beating as the increase in operating costs downed margins.
Q2 revenue rose 13% YoY to Rs.2,158 crore. The company sold 4.5 MMT of cement during the 2nd quarter, a volume growth of 13%. Strong demand across its key operating markets ie.,east and south drove cement volume growth in Q2.

EBITDA margin declined 330 bps YoY as the sector is facing challenging times on the cost front. Power and fuel costs as well as freight expenses have witnessed a sharp rise in the last 12 months. Despite stable realisation, EBITDA per tonne dipped to Rs. 944 as unitary cost increased 4 %percent QoQ. Operational performance was significantly better than UltraTech Cement, ACC and Ambuja Cements. EBITDA per tonne continues to be much ahead of its peers.

Amalgamation with Orrisa Cement (now OCL India) is complete. The company plans to list OCL in Q3 FY19 and expects the combined merged entity to be listed in early Q4 through a share swap agreement. The company has also completed acquisition of Kalyanpur Cements (1.1 MPTA) and the subsidiary has been renamed DDSPL. The management has been able to revive clinker production from this plant over five months and aims to start commercial operations from November. The company is still awaiting the National Company Law Tribunal and Supreme Court’s final decision on Murli Industries and Binani Cement, respectively.

Demand for cement has been fairly strong in H1 FY19. However, pricing power remains elusive as industry leaders prefer to chase volumes. Prices as well as demand should remain stable in the run-up to general and state elections.

Prism Johnson Ltd

 

Cement Segment Downs Overall Performance

Prism Johnson’s Q2FY19 results were below market estimates, with EBITDA coming in at Rs.803 Million (market est: Rs.1,107Million) and OPM at 6% (market estimate: 8.7%) due to the disappointing performance of the cement business (EBITDA/t declined Rs.439 QoQ).
Cement sales volumes were up 20% YoY at 1.35 Million Tonnes. Cement realization was up 10.6% YoY (down 0.6% QoQ). Operating expenses per Tonne was up 6.5% YoY; however, higher realization/cement sales volumes led to a 3.3 pp YoY improvement in OPM. EBITDA/tonne was at Rs.550, up 49.8% YoY.
Poor perfrmance was due to higher operating expenses in the cement segment which was the bane of all cement companies who have so far posted their results barring a few.

M.P.Birla Group

 

Birla Corp Posts Expected Q2 Results

For the quarter ended September 30, 2018, Birla Corp reported a near 55 % dip in standalone net profit to Rs.2.00 crore, against Rs.4.40 crore in the year-ago-period. Total income during the period stood at Rs.999 crore. On a consolidated basis, the company’s net profit increased manifold to over Rs.16 crore in Q2 FY19 (Rs.1.46 crore). Net income saw a 19 % jump YoY to Rs.1,485 crore. Cement production during the quarter stood at 30.97 lakh tonnes, compared to 26.84 lakh tonnes in the year-ago-period. Cement sales for the period stood at 30.68 lakh tonnes.

The second phase capacity expansion at the Kundanganj unit of the company (at Uttar Pradesh) will be carried out. A third production line, with an annual capacity of 1.2 MPTA, will be installed at an expected investment of Rs.250 crore. The Kundanganj unit’s current capacity is 2 MPTA.

Cement Marketing Consultant

Cement Marketing Consultant

Cement Plants of Top 5 Cement Companies

Plant List of Top 5 Cement Companies in India

For those of you who have reached here searching for the detailed plant list of cement companies in India, please follow this link.

Plant list of cement companies in India


You may also be interested in the list of cement companies in India, the link to which you will find below.

List of Cement Companies in India 

Careers In Top 10 Cement Manufacturers

Careers In Top 10 Cement Companies

1. UltraTech Cement
https://www.ultratechcement.com/careers-with-ultratech-cement

2. ACC Limited
http://www.acclimited.com/careers

3. Ambuja Cement
https://www.ambujacement.com/careers

4. Shree Cement
http://eapps.shreecementltd.com/applyvacancy/

5. Dalmia Cements
https://dalmialive.ramcoes.com/rvw/PortalCalling_dalmia.aspx?username=ExternalApplicant12

6. Ramco Cement
http://www.ramcocements.in/Openings.aspx

7. M.P.Birla Group
Birla Corporation
https://www.birlacorporation.com/online-application.html

8.India Cements
http://www.indiacements.co.in/join-our-family.php

9. JK Lakshmi Cement
http://www.jklakshmicement.com/apply-online/

10. JK Cement
http://www.jkcement.com/careers

Ambuja Cements PostsBelow Par Q3 Results

Ambuja Cement Market Analysis

Aditya Birla Group Company

 UltraTech Cement Price

Adiya Birla Goups' Flagship Cement Company, UltraTech Cement Ltd’s posted their quarterly results. Profit dropped 9.4% and missed all market expectations, due to higher operating expenses.
Standalone net profit, which does not account for its subsidiaries, stood at Rs.391 crore for the quarter ended 30th September, compared with a profit of Rs.431 crore a year earlier.
Cement Industry Analysts on average had expected the company to post a profit of Rs 415 crore.

However, on the bright side, revenue from operations jumped 20.9% to Rs.7,771 crore, while total expenses rose to 23.5%.

Rising energy and logistics cost coupled with rupee depreciation led to a 14% increase in costs compared to the second quarter of fiscal 2018. Key costs were higher costs of pet coke and higher logistics costs on account of higher fuel costs.

Markets reacted and shares of UltraTech Cement dropped after the results.

ACC Cement

ACC Cement

Click Here To Register For Fresher Cement Industry Jobs

Double Bull Cement

 Emami Cement

The latest venture of the Emami Group is Emami Cement Limited (ECL). ECL has recently launched Emami Double Bull cement in the markets of Chhattisgarh, West Bengal, Odisha and Jharkhand. ECL has an installed capacity of 4.4 million tonnes of cement built at an estimated cost of over Rs.2650 Crores.
The 4.4 million tonne of capacity comes from the state-of-the-art integrated cement plant at Risda, Baloda Bazaar, situated 70 km away from Raipur, the capital of Chhattisgarh. The integrated plant has a capacity of 2.4 million tonnes each of clinker and cement which is being upgraded to 3.2 million tonnes of clinker.
A state-of-the-art grinding unit has now being commissioned at Panagarh, 150 km away from Kolkata with an installed capacity of 2 million tonnes of cement. The Panagarh unit is one of the biggest greenfield project in West Bengal which took a record 13 months to start production.
The company is now in an advanced stage of commencing construction for yet another ultra-modern grinding plant at Jajpur near Cuttack in Odisha. This plant would be commissioned in the first quarter of 2018 so as to build a total capacity of 6.2 million tonnes of cement for the company.

Emami Cement has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for an IPO worth ₹1,000 crore.
The IPO will comprise a fresh issue of shares of up to ₹500 crore and an offer-for-sale by existing shareholders for up to ₹500 crore, according to the DRHP.
The company proposes to utilise the net proceeds raised through the issue for repayment and/or prepayment of debt, which is close to ₹400 crore, and for general corporate purposes.
Emami Cement currently operates three manufacturing plants and is in the process of setting up another plant, subject to necessary approvals.
This would result in an aggregate installed capacity of 9.3 million tonnes per annum (mtpa) of cement and 3.2 mtpa of clinker by April 2019.

Emami Cements markets its cement ubder the brand name Double Bull.
Emami Double Bull PPC
Emami Double Bull PPC PROCEM
Emami Double Bull PSC
Emami Double Bull OPC-53
Emami Double Bull OPC-43
Emami Master Premium Cement
are the individual brand manes and types of cement Emami Cement markets.

Ambuja Cements Moves SC

Against NCLAT Order Upholding CCI Penalty

In August of 2016, CCI had slapped approximately Rs.6,700 crore penalty on 11 cement firms including ACC, Ambuja Cements, JK Cement, Ramco Cements and UltraTech Cement as well as the Indian Cement Industry body Cement Manufacturers Association for indulging in cartelisation.

The CCI ruled that 10 cement companies against whom the CCI had imposed penalties, had used the platform provided by the Cement Manufacturers Association and shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted production and supplies in the market. It also imposed the highest penalty of Rs.1,175.49 crore on Aditya Birla group company UltraTech Cement.

The Builders’ Association of India had filed the petition in August 2016 against 10 leading cement companies.

The National Company Law Appellate Tribunal (NCLAT) had upheld the Competition Commission of India’s (CCI) decision to impose a Rs.6,700-crore penalty on 10 cement companies for cartelisation. The order stated that the cement companies had reduced production and dispatches across all sectors during a period when the demand from the construction sector was positive. Further the order stated that some of the cement companies had stopped booking sales orders in the non-trade segment and there was a shortage of supply of cement. The order went on to say that it found that the Commission has imposed a mere minimum penalty of Rs.6,700 crore. The verdict by the appellate tribunal comes two years after the CCI imposed the penalty.

The 10 companies against whom the penalty has been imposed include
Aditya Birla Group company UltraTech Cement (Rs.1,175 crore),
Jaypee Cement (now acquired by UltraTech: Rs.1,323 crore),
ACC (Rs.1,148 crore),
Ambuja Cement (Rs.1,163 crore),
JK Cement (Rs.128 crore) and
Century Textiles (Rs.274 crore).
Binani Cement, which may be acquired by UltraTech under insolvency proceedings, was also penalised Rs.167 crore.

Ambuja Cement has now moved the Supreme Court against the NCLAT’s ruling that upheld the fair trade regulator CCI’s order to impose a penalty of Rs .6,700 crore for alleged cartelization on 11 manufacturers. Challenging the NCLAT’s July 25 order, Ambuja said that the tribunal failed to appreciate that where a private association of industry has been tasked to collate data which is not competitively sensitive and does not reduce strategic uncertainty, such data would become available to the members of the association.

According to the company, the allegation of cartelization was based on data from 2007 onwards, which period was characterised by a range of increasing and decreasing dispatches for all the cement manufacturers. A mere fall in dispatches is not sufficient evidence of an anti-competitive conduct; there would be a case for investigation if there was a uniform fall in dispatches accompanied by a uniform increase in price, which was not the case here, the company further noted.

Sagar Cements Excels

Sagar Cements Posts Good Results

Sagar Cements in a statement issued said that it's total consolidated cement sales rose 24.03% to 247,051 MTs in August 2018 over August 2017.

Sagar Cements' Total consolidated cement production rose 27.26% at 243,963 MTs in August 2018 over August 2017.

Sagar Cements' consolidated net profit dropped 41.62% to Rs 5.82 crore on 6.24% rise in net sales to Rs 274.90 crore in Q1 June 2018 over Q1 June 2017.

In related news, Shares of Sagar Cements rose 3.4 percent as the cement company reported robust sales figures for the month ended August 2018.

Sagar Cements is engaged in manufacturing cement at its plant in Mattampally, Nalgonda district, Andhra Pradesh. Sagar Cements  is a prominent player in the field of cement in Andhra Pradesh for over 3 decades. The Company manufactures various varieties of cement like Ordinary Portland Cement (OPC) of 53 grade, 43 grade, Portland Pozzalona Cement (PPC) and Sulphate Resistant Cement (SRC) to suit different needs of customers and all these products are being sold under the Brand Name “Sagar”.

The Company which started its operation with a Cement capacity of 66000 TPA, has gradually increased it to the level of 2.35 MTPA, while its Clinker capacity has also witnessed a significant increase from 66000 TPA in 1982 to present level of 2.0 MTPA.

Registered and Administrative Office
Plot No. 111 , Road No. 10
Jubilee Hills,
Hyderabad - 500 033
Phone : +91 40 23351571
Fax: +91 40 23356573

Works
Mattampally
Via Huzurnagar
Suryapet District
Telangana - 508 204

Bayyavaram Village
Kasimkota Mandal
Visakhapatnam District
Andhra Pradesh – 531031

Profits Under Pressure

Cement Companies Profits Under Pressure

ICRA in its recent report has painted a slightly grey picture for the cement industry as despite pick-up in cement demand in first quarter of 2018, higher coal, pet coke prices and freight costs are likely to put pressure on the profitability margins of cement companies. 

Domestic cement demand registered a very healthy growth of 14.2 % in the YOY first quarter of 2018. This buoyancy has however not been translated into better financials for the cement sector. The rising production and supply have restricted any significant increase in cement price, which remained flat in Q1 2018 on a QOQ basis. They declined by around 5%-6% on a All-India level in Q1 2018 on a YOY basis. 

Adding to this, rising costs continues to put pressure on the profitability of the cement companies in 2018, the report said.

Overall, cement demand is slated to show a growth of around 6%-7% in 2018, primarily driven by a pick-up in the affordable and rural housing segments, infrastructure, road and irrigation projects.

Cement production remained in the range of 27 MPTA-28.6 MPTA during the April 2018-June 2018 period, clocking the highest at 28.6 MMT in June 2018. In April 2018, the production continued to remain steady at 27.3 MMT, an increase of 16.7 % on a YOY basis. It increased by 2% on an MOM basis in May 2018 to 27.8 MMT and by 2.8 % in June of 2018. 

It has continued to remain healthy since January 2018 and this was supported by the demand in Andhra Pradesh and Telangana, driven by irrigation, low cost housing and infrastructure projects, the eastern markets driven by low cost housing and infrastructure demand and western Indian markets led by execution of infrastructure projects. Rural housing saw a pick-up, post monsoons, due to the improvement in the rural economy, following normal monsoons. 

In Q1 of 2018, cement prices declined in most markets such as Delhi, Chandigarh, Kolkata and Hyderabad. However, prices in Ahmedabad have been an exception with a 2.8% higher cement prices. Last year, in April 2017, cement prices were hiked, post demonetisation in most markets, which resulted in higher cement prices in Q1 2017. Also, the demand and the prices are likely to remain under pressure in Q2 2018 due to the monsoons.

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